Monday, February 17, 2014

Beware of a Hot IPO Schedule Especially Large Offerings they are associated with Market Tops

Alibaba’s Average Valuation Reaches $153 Billion on Earnings

Analysts expect Alibaba to hold the biggest IPO since Facebook Inc. (FB), now valued at $159.4 billion, as it taps into the nation’s 618 million Internet users and pushes into mobile games and instant messaging. Goldman Sachs Group Inc. valued Alibaba at $150 billion in a Jan. 29 report, while Macquarie Group Ltd. said the Hangzhou-based company may be worth as much as $200 billion.
DYI Comments:  IPO's of this size are analogous with market tops.  In order to get a deal done of this size a giddy over optimistic market is needed to open institutional investors wallets world wide.

DYI

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