Archive
Alibaba IPO and Yahoo Valuation
Call me old, but am I the only one that remembers the Palm IPO? OK, so I was among the cattle desperately trying to get shares of Palm, back in the day – March 2000. Now, something with Alibaba smelled very similar to that Palm IPO…
March 2000:
- Palm IPO rises 150% by closing bell
- Palm closes opening day with a $53 billion market cap
- Main Palm shareholder 3com rises drastically as a result of Palm’s market cap
November 2007:
- Alibaba IPO rises 193% by closing bell
- Alibaba closes first day of trading with a $25.7 billion market cap
- Main Alibaba shareholder Yahoo! drops 4.6%???
OK, so Mr. Yang is in the hot seat, but is it so serious as to discount the more than $6 billion they just made off of the Alibaba IPO, plus a nearly $2 billion more in the drop of today?
Then again, investors could be discounting the huge dot-comish PE that Alibaba carries.
Oh, and for those of you wondering how Palm did ever since that monumental IPO… PALM Market Cap: $0.9 billion
Ciao Record Labels
Do you smell blood in the water?
In the latest seismic shift to rock the music industry, pop superstar Madonna is close to leaving Warner Music Group Corp.’s Warner Bros. Records for a $120 million deal with concert-promotion giant Live Nation Inc., according to people familiar with the deal. Madonna still has another studio album left to deliver with Warner Music.
The shift in power, mainly (if not totally) by the Internet distribution channel for music downloads, is causing a slow and painful death for music labels. It might be time to start filling those Christmas stockings with put options of record label companies.
Are we broke? Conference with U.S. Comptroller General D. M. Walker
Today I was at a conference where U.S. Comptroller General Walker spoke about the trends in our economy for the next ten to thirty years. I’d like to share a few points he brought up, in hopes that we build more consciousness in our future:
“The United States’ economy is not as strong as advertised… We are headed to very rough seas.”
“Key national indicators put the U.S. at 16 out of 28 countries… 23 out of 30 in life expectancy.”
“[At current trends] the U.S. Medicare will run out of money in 2019” (in 2007 we just began a deficit in Medicare)
“U.S. is number 1 in obesity” – At least we are first in something!
Wake up America! It’s time to go to work. For more information, read the report 21st Century Challenges by the U.S. Government Accountability Office.
Rafael Sosa's Weblog 