Hear that noise? Its the sound of the retail investor rapidly paddling away from the Kayak IPO
Facebook is breaking through $28 per share as I write this blog post and this news coincides with the reports that the Kayak IPO will be postponed. And guess what… This IPO is brought to you by the same lead underwriter Morgan Stanley who is being lauded for maximizing the returns for Facebook and screwing the public. Well, not everyone, just the smaller investors otherwise known as Main Street.
The issue was that while larger investors were told of the falling Facebook earnings the little guys weren’t and were left buying shares while many insiders bailed.
So the Norwalk, CT based (TMC is headquartered here as well) Kayak IPO which was to start promotion this week is being put on hold for a while. Who knows how long. This isn’t to say Kayak has an easy road ahead of it with the competition coming from Google and a slew of other companies. But still, if Facebook had a better IPO; one priced more reasonably, perhaps the turnout would have been better for initial investors and Kayak would have had an easier time.
But the above challenges coupled with huge NASDAQ issues resulted in an IPO which will lead to years of lawsuits. Not exactly the best way to get the at-home investor back into the market.
Hear that noise? Its the sound of the retail investor rapidly paddling away from the Kayak IPO.
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