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Price -- my next guest says that that's a serious problem and it's not gonna get this anytime soon.
Joining me now from the moment the price is the founder CEO back with the EM.
That Mona -- -- cannot name your firm correctly.
-- -- -- -- -- -- -- -- -- -- -- No problem.
Let's talk about this IPO market because the names -- giant names every what was so pumped up -- me.
You know wouldn't have gone public -- -- -- gone public Zynga -- gone public pandora's gone public.
And -- you know we had those giant birthday pops and it just seems like it's been almost a disaster sense -- Yes I agree the performance in the after market has been a problem but not just for this year this has that been over ten year trend now.
Which tells us more about what's underlying the problems in the market and people are realizing what are those underlying problems and well if you look back I mean you know -- -- very important to our nation they're very important economic growth and to job creation these -- the biggest problems in America today.
And DCA the National Venture Capital Association has measured for over four decades.
The statistics at 90% of job creation happens after the IPO.
So you know reaching the public markets is that an important step for companies and so -- connect to you know the unemployment issues are happening our country today.
It's started you'll see that that's when the IPO's really started to change so what we're looking at is a serious infrastructure.
Issue in the markets which means this isn't a market cycle where -- and then we're down a markets -- -- business and the structured means.
That unless we change some of the structural issues are here like.
And other issues you're not gonna see changes and until IPOs come back on track these of the company's remember that are growing that jobs in America they have the fastest rate of revenue growth.
So they're really the growth edge of the American economy so this is a problem for all of us not just for us here in Silicon Valley.
Now there -- -- -- -- these companies goes public -- big gaps up the next day and it's up like 4050%.
Everyone says that that somehow that the investment bankers and a bad job on the other hand we have want one like -- Which really never moved the needle never move was Zynga well served -- investors undeserved.
You know that's an excellent question and it's it's very hard to answer these types of questions but I would definitely say.
You know up the price of the company is what the market will bear right just like in any and any other market.
You know definitely am you know that any company that IPOs.
Has most of -- futures still ahead of it.
So the fact that buyers you know having full transparency full information.
On the company through their -- one filings all the SEC filings at the time that -- -- public.
You know the the price shows the demand that the -- but.
I want sections.
Because I don't want I don't I wanted to stop and we're gonna run out of time here -- sounds like you're espousing the efficient market theory but it can't be that a vision of the stock -- that.
50% trading range within a one week period.
You know I agree with -- and you'll see many of the IPO's they traded you know 34500%.
Of the IPO allegation in the first day or two after the IPO which means that nobody is buying at the -- is actually holding the stock.
So these are out of traders so what happened ten years as we move from market that we're focused on investing in markets that are focused on trading these are all very short term and over trading high frequency trading is actually pushing everyone's valuations down overall so we need to look at that as an.
Issue quick -- quickly in about twenty seconds your outlook for IPOs this year is a chance that -- maybe they'll do better.
That in 2012 -- 111.
Yes I do believe that they will do better for several reasons were getting smarter about it we have more information and companies are figuring out how to reach the investors -- -- -- -- so that they can actually manage the trading of their stock.
So that the stock prices actually focused on the company's value -- not just on its trading logistics so I think as we get smarter here and also new regulations.
And aren't ways of managing the regulations to help companies come out on the public markets create jobs.
And help grow America.
You know we're getting smarter -- getting better in DC has been very active and education educating all of us.
Good enough and I hope they get smarter and educating themselves as well -- on a good authority thank you very much we appreciate it --
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