iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,430 Blog Posts

This is Literally Your Only Shot at Success

The stock market is more rigged than ever, thanks to the cabal of venture capitalists. Men like Marc Andreesen (sp?) and Frederick Wilson enjoy inflating the wares of their private investments, share their schemes with loyal friends and family, then dump them onto an ignorant investing public, courtesy of your local investment bank. When market’s disconnect, like they are doing now, this is when the layman, the ordinary goat herder reading blogs for information, can separate himself from the pack and score big wins.

The venture capitalist cabal couldn’t care less about public markets, only as far as its liquidity is concerned. They want to sell their “investments” at 100x sales and never look back at the damage they’ve inflicted upon investor psyche/purse.

STEER CLEAR OF ALL IPOs, for they are wrought with schemes and diabolical intentions to use you as a source of liquidity. The sooner the market starts rejecting IPOs coming public at 20x sales, the faster we can rid ourselves from being hoodwinked into the GRPN’s, ZNGA’s and ETSY’s of the world.

Seriously, when was the last time a stock came public, went up after IPO, and held its gains for more than a year? I can think of a handful: PANW comes to mind. But they are rare. The IPO market wasn’t always this fucked. Back in the day, if a company came public at 10x sales, that was insane. Now that’s value.

The only exception to this scheme is found in biotech, mainly because Mr. Wilson has no edge in the FDA approval game, which is why the best performing IPOs, post market, have been found in this sector, with overwhelming abundance.

I am harsh on the VC community because I hate what they represent. They stand for the worst type of greed, an avarice that is solely directed at taking advantage of the small investor, while ingratiating themselves with ungodly gains.

Fuck them.

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17 comments

  1. ebtda

    Visa was one of the greatest IPO.

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  2. sknight1973@gmail.com

    Nice work Mr. fly…

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  3. fryguy15

    CDW – good ipo

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  4. fryguy15

    Recent Bain Capital IPOs have been successful… BFAM, BURL, MIK, DNKN.

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  5. goose20

    I agree with you FLY and thank you.

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  6. qeinfinity

    I think you have to be delusional to buy anything from the tech sector at or near IPO, particularly software based companies. These companies follow the same pattern of acquiring millions of users by giving away their product and plan to “make money later” all trade at obscene valuations. People are excited about these at IPO because they know about, and often use, the services offered by these companies and know they’re just growing their traffic like crazy. Unfortunately that “make money later” part is harder than people think, and even if they manage to pull it off, they’re still buying a company that’s gone through 8 rounds of VC funding by the time IPO day comes and are buying in at prices the company will take 10+ years of sustained growth to justify.

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  7. og

    Market sure looks shitty.

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  8. bruce keller

    Yeah, I close all my calls and VIX puts earlier today. Got a little carried away yesterday. I’m in love, what can I say? 😀

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  9. speerothekid

    avoid IPO’s: less of a shot at success and more of a avoidance of failure, no?

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  10. dewey dortmunder

    I love it when you attack someone other than the poor reader class. Bravo!

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  11. t.c.

    Why am I liking this Trump guy.

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  12. levrage

    Feeling a little sour about CYBR? Me too.

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  13. heaterman

    Fly you should add HBAN to your list of regional banks worth watching or actually plunking down some shekels.
    I’d rate it a buy right here today with 20% up side by 2017.
    ……Unless the upcoming election goes all to hell next fall…….

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