Party over, oops out of time
So, tonight I'm gonna party like its 1999
In addition to the biotech bubble hemorrhaging air, many pundits are pointing to the abundance of IPOs as a sign that the end is near.
It is not just the volume of offerings, but much is being said about the quality of names going public, as 70% of recent offerings have yet to post profits. This is a yellow flag, but it is not 1999. Last year, in one of my commentaries I had written how the' Jobs Act' was a gift to Silicon Valley, pushed through by President Obama, for stepping up to the plate and making up for fewer contributions to Wall Street. Now, a lot of companies are jumping on the bandwagon.
One of the greatest Norse sagas (epic ancient stories) is that of King Ragnar; he was a fierce fighter and Viking ruler, known for his bravery that had no boundaries, which lead him to invade England with the wrong ships and against overwhelming numbers. He was captured and killed in a pit of snakes. His sons: Ivar the Boneless, Bjorn Ironside, Halfdan and Ubbe Ragnarsson, and Sigurd Snake-in-the-Eye, avenged his death and pillaged England, Wales, France, and Italy. To this day, such stories of King Ragnar and his sons are legend and Romanized in books and songs, but not in any electronic games.
The Investment Saga
The great stock market saga is currently in a volatile period, and cynics say like the great but stubborn king of Norse legend, investors are on the cusp of perishing in a pit of snakes. In this case, the snakes would be Wall Street and the Federal Reserve would be ready to strike a deathblow.
While I think this is a bit hyperbolic, there is no doubt the market has been spooked by the volatility of high-flying NASDAQ names. It is likely another saga will only add to the specter that this run is coming to an end. Tomorrow King Digital goes public, riding the hottest gaming saga in the west: Candy Crush. It's not a flimsy company founded on the back of a napkin a week ago, but it follows the disaster of 'Zynga' that once boasted hot, online games that seem a distant memory.
This company took in $1.9 billion last year, with $568 million hitting the bottom line!