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Baidu Has A Bubble-rific Debut
from the bad-bankers dept
Well, apparently investors didn't care that Baidu is about to lose its main differentiating feature (the ability to download free music and movies). In the pursuit of new dot com bubble mania, investors drove the stock up 354% in its debut (though, actually, it's not clear that number is accurate -- my calculation of the price jumping from $27 to $151 suggests about a 460% increase). We haven't seen that sort of first day bump since the bubble years, so it might be worth breaking out the old IPO lesson for those who have forgotten it. While this sort of news excites people and makes them think that this was a successful IPO, it's actually the opposite. It means the investment bankers did a horrible job of pricing the shares -- leaving a ton of money on the table that should have gone to Baidu, but instead went to people (friends of the investment bankers, of course) who immediately flipped their shares.
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The Next Asian Tech Bubble
There's a new genre of X-rated video games made for women, featuring handsome young men in love with each other. The genre is called "BL" (Boy Love), and a new store specializing in it just opened in Tokyo. We can assume it will be popular among some people here.
News article: http://www.tokyo-np.co.jp/00/tokuho/20050807/mng_____tokuho__000.shtml
BL site:
http://www.arlesnovels.com/
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How they got 354%
They used the closing price, not the high for the day. Seems most of the stock market types have a real affinity for the open and close prices. Not sure how they'll handle things when the markets go to 24x7, which will happen one of these days as they get more computerized and more global.
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Re: How they got 354%
dorpus, you loser, what does that disgusting game have to do with Baidu going public?
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