http://brainstormtech.blogs.fortune.cnn.com/2008/08/08/rackspace-ipo-tanks/ Fortune's tech team offers analysis and perspective on the world’s most important developments. Tue, 22 Dec 2009 03:43:12 +0000 http://wordpress.com/ hourly 1 http://brainstormtech.blogs.fortune.cnn.com/2008/08/08/rackspace-ipo-tanks/#comment-5325 magic from abroad Fri, 08 Aug 2008 23:33:12 +0000 http://bigtech.wordpress.com/?p=1334#comment-5325 The numbers were and are good. Just wait. Now is very interesting to buy at 10 USD. The numbers were and are good. Just wait. Now is very interesting to buy at 10 USD.

]]> http://brainstormtech.blogs.fortune.cnn.com/2008/08/08/rackspace-ipo-tanks/#comment-5324 CDavis - Houston, Texas Fri, 08 Aug 2008 21:51:26 +0000 http://bigtech.wordpress.com/?p=1334#comment-5324 Study how the deal was done. It was a modified Dutch Auction. One could make the case that an on-line auction process fails to identify those who really want to own the stock apart from those who are more speculative. As a result, seasoned institutional buyers shy away from the deal on the suspicion that there are too money short-term speculators in the deal who are too ready to sell on the first day if things don't go well. Look at the total day's volume of 14.7 million shares. The total offering was 15 million. All the shares that were bought in the IPO were sold the first day. The more seasoned institutions just stood by and bought the stock at a lower price. Just one person's theory! Study how the deal was done. It was a modified Dutch Auction. One could make the case that an on-line auction process fails to identify those who really want to own the stock apart from those who are more speculative. As a result, seasoned institutional buyers shy away from the deal on the suspicion that there are too money short-term speculators in the deal who are too ready to sell on the first day if things don't go well. Look at the total day's volume of 14.7 million shares. The total offering was 15 million. All the shares that were bought in the IPO were sold the first day. The more seasoned institutions just stood by and bought the stock at a lower price. Just one person's theory!

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