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Share let's get to the IPO of the year easily linked in the shares are up just a day after shares shot to the moon.
On their debut at the New York Stock Exchange where the -- Levys are saying that the post was so busy she couldn't get within half a mile of it -- a lot of investors wondering you know.
Is this price 95 dollars when the actual IPO price the night before was 45 dollars what does it mean should try and get a piece.
Of this one or maybe the next -- IPO.
Joining us now on fox this is -- -- that captain Smith the principle of Renaissance capital an IPO investment advisory firm.
You can't an -- there are people who were -- Get an conflicted but they couldn't.
It is hard to get -- -- especially one of that size it's kind of a small IPO went on the overall with that scale by peers are needing a number of shares that were put out there was so limited they -- limited and there's just so much interest in social networking and so this one is one of the first of many social.
Networking companies over -- So I think that this one had that real squeeze that made it very difficult for investors to -- that you've been around the block you've seen IPOs come and go with -- past guests on Linkedin because so much from -- frenzy surrounding this IPO.
Does it come down a couple of months or do you think that this is more like the Google of the world.
It is going to be an IPO it could be a Google but it will have to have to evolve a little bit -- -- life and I think.
Really what we're saying is the beginning of the squeeze the supply demand squeeze that's happening.
And the fundamental investors haven't yet taken hold of the stock.
We think that it'll be.
Pretty volatile for a couple weeks before it -- and their price that might be connected in some way with what the future returns and we definitely remind people that insiders people who work there have shares they're dying to get rid of so they can cash in at least some of the money.
-- that's called the lock up period when it expires.
Will we see the stock goes down.
Often stocks to trade down ahead of their lock up expiration can actually.
Between now 100 -- days it's a good time for an investor to take a look at this because they'll be those kinds of volatility.
That might make an opportune time for an investor to -- -- we think it's a good company the question is.
What is the right price for this company there were 48 tech IPOs last year.
But in 1990 time they were more than 300 of them.
So can we really say that were returning to the dot com -- explosion of the bubble and then a subsequent implosion or is this much calmer times.
We are coming off -- basically Death Valley Days for the IPO market as we went through the financial crisis we're now getting back to more normal times I think this year will turn out to be a very strong year 2011.
But it's only going to be about half the levels of that Internet bubble about Chinese IPOs of red -- -- -- I I -- something in the New Yorker Magazine that a lot of these Chinese companies.
They find shell companies in America they prop them up they have no earnings no revenue you've got to be careful just because something's attached to a Chinese name doesn't mean it's a safe -- correct you have to be careful the accounting has been an issue but there are some good Chinese IPOs that are worth looking at an -- fund we own -- -- Which is the Chinese -- too.
And we think that that's a very good point so it's worth looking at them and making sure that the governments in the accounting is yes exactly exactly and at the end with it with the IPO idea.
Doesn't individual getting -- not necessarily on Lincoln because of what was so small but something house can can the average -- collect up there participate or is this a big boys game this is a challenge for even the big boys and for individuals with -- like Lincoln.
-- way to do it would be you can purchase individual shares -- a full service broker we run an IPO -- so an investor can go to fund manager like ourselves or other IPO related fund managers what's one on the horizon you're really looking out for.
Well I think investors should look at one on the calendar called yandex which is they basically the Google of Russia.
Worth a look watch for the Russian oriented things that may be associated with -- but a very interesting one is -- -- again next week and it'll trade on the -- It will trade it should I believe a billion dollar write you OK -- -- -- watching that Kathy Smith of Renaissance capital thank you so much thank you.
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