By now there is no question that the Facebook IPO was totally screwed up. Not only was just about every aspect of the deal FUBARed, but the overall size of the deal, $18 billion, magnified the mess. Yes, Nasdaq and Morgan Stanley both did a horrible job. But ultimately the blame for the disaster is solely on Facebooks 27 year old CEO Mark Zuckerberg. All final decisions regarding each aspect of the IPO had to be made by Zuckerberg. That is what CEOs do. Read More
The next big financial crisis we are likely to face will not come from Europe, which everyone already knows is in recession, but rather from China. China is in big trouble and most investors do not even think that is possible. Everyone still believes that China, even with a slower growth rate, will be the engine that pulls the globe out of economic distress. Read More
Introducing a new weekly product from TrimTabs: Biderman’s Market Picks!
This is the first TrimTabs Investment Research Biderman’s Market Picks, which is free to all. Biderman’s Market Picks will be available at mid day each Monday or the first trading day after a holiday. The next issue will be on Tuesday May 29.
Alas, it was another painful example that exuberant expectations die fast on Wall Street.
It happened again this past Friday, which some veterans thought would turn out to be a fabulous Friday, a day that would pull the sagging stock market out of the doldrums and end the 843-point dive in the Dow Industrials since the end of March. The catalyst was supposed to be social networking biggie, Facebook (FB), one of the most hyped initial public offerings ever. Expectations were widespread that the stock would emulate a spaceship takeoff by climbing well above the $38-a share offering price in its first day of trading, perhaps even more than doubling to the $70-$80 range. That hope turned out to be just another Wall Street pipe dream. Instead the shares were a dud, barely managing to eke out a measly first-day gain of just $0.23 or 0.61%. Read More
TrimTabs President & CEO Charles Biderman asked Director of Macroeconomic Research Madeline Schnapp some important questions about the economy going forward. Here’s a transcription of the interview: Read More
In last Mondays video I said stocks and bonds could rally starting Friday after the Facebook deal prices Thursday night. While I expect Gold to keep rallying, US stocks are unlikely to. Why? My good friend, the late Ed Hart used to say “stocks will trade their way to perdition.” Ed Hart was the best thing on the old Financial News Network before it was assimilated by CNBC. Stocks trading their way to perdition means to me that regardless of long term reality, over the short term stocks can go counter trend, but only for a while. Read More
A major stock market event will occur later this week when Facebook goes public. Stocks and gold likely will keep selling off until the Facebook offering hits the market. And everything else being equal, I then expect a sharp rebound in stocks and gold after the offering.
I personally will be buying Facebook and gold on the IPO day.
The Biderman Market Theory says all there is in the stock market are shares of stock. Not very complicated. 80 percent of all shares are held by mutual funds, Exchange Traded Funds, hedge and pension funds and family offices. Money flows in and out of those institutions. Read More