Wall Street's new flavor of the week, the hot IPO today was a company named Lyft.
Perhaps you'll pardon me for not knowing much about this company.
If it's a ride sharing company, then that's understandable,
as the business model fits today's mentality of rapid growth, of the new economy, over old traditional established.
I do know the IPO was oversubscribed, and the stock began trading over $85 a share.
And I do know, from looking at the chart, that on day one,
those who were fortunate enough.. they think,
to get in on the initial offering,must a have felt they had riches waiting to be harvested,
However, a peculiar thing happened after the stock opened mid day.
In a bout of not one, but two selling bursts, Lyft, plunged 10 % in just 3 hours this afternoon.
Those who needed to own the hot IPO at 85, were being overwhelmed by sellers,
who on the other hand were just looking to get out as fast as they could.
The stock market mentality of legalized gambling,
shown in both the flashy, showy aspect of the sales pitch, the IPO
and the immediate bust of the result, the 10% rollover in the value
clearly shows that substantial market risk, however you want to measure +package it
is very much alive and well.
Buyer Beware.
THE_UNWIND
3/29/19
NEW YORK
Perhaps you'll pardon me for not knowing much about this company.
If it's a ride sharing company, then that's understandable,
as the business model fits today's mentality of rapid growth, of the new economy, over old traditional established.
I do know the IPO was oversubscribed, and the stock began trading over $85 a share.
And I do know, from looking at the chart, that on day one,
those who were fortunate enough.. they think,
to get in on the initial offering,must a have felt they had riches waiting to be harvested,
However, a peculiar thing happened after the stock opened mid day.
In a bout of not one, but two selling bursts, Lyft, plunged 10 % in just 3 hours this afternoon.
Those who needed to own the hot IPO at 85, were being overwhelmed by sellers,
who on the other hand were just looking to get out as fast as they could.
The stock market mentality of legalized gambling,
shown in both the flashy, showy aspect of the sales pitch, the IPO
and the immediate bust of the result, the 10% rollover in the value
clearly shows that substantial market risk, however you want to measure +package it
is very much alive and well.
Buyer Beware.
THE_UNWIND
3/29/19
NEW YORK