May 15, 2012
I thought this was a rather well thought out guide (basic as it is) on how to best pick up shares of Facebook (FB) if you are not lucky enough to get in on the Pre-IPO price.
June 15, 2011
Wow, 87% is a big number and if anything starts to change in the world of advertising over time, this stock is going to end up being a real dog. Competition is fierce and the barriers to entry are low.
The company is not profitable and yet the IPO is oversubscribed, pricing Read more
June 22, 2008
Guest: Zach Scheidt, Hedge Fund Manager. We discuss the IPO market and Andrew is back on his soapbox on the Lehman letter saying that a big part of the problem is the lies and PR spin by the financials. We answer some listener questions and get into a few hedging ideas with the use of ETFs. We even dare discuss the idea of shorting the DJ Oil Index!
Zach Scheidt is the founder and Managing General Partner of Stearman Capital, LP. After graduating with honors from Lee University, Zach attended Georgia State University at night while beginning his career in the securities industry. He then received his MBA in 2001 and also achieved the Chartered Financial Analyst designation in 2003.
Note: Zach’s IPO/New Issue Hedge Fund is available for qualified investors.
Zach is an avid writer (you have to subscribe to his blog) and periodically publishes articles on individual securities as well as sector and general market themes. He is a regular contributor to Seeking Alpha and has been quoted in numerous financial publications including the Wall Street Journal, TheStreet.com and Yahoo Finance. A participating member of the Atlanta Society of Financial Analysts, Mr Scheidt maintains an active profile in the Atlanta investment community. Also, read Zach’s excellent article on Hedge Funds….
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The Disciplined Investor Managed Growth Strategy
Stocks and other mentions: (DUG) (DIG) (AAPL) (YHOO) (COF) (LEN) (BIDU) (LEH)
March 19, 2008
The VISA (V) IPO is coming and it is going to be BIG. A few days ago, I speculated here that the IPO may be pushed back as the markets were in no mood for an IPO even as few have been brought to market of late. It was, and is, not the most opportune time as investor’s are frazzled and institutions are disquiet during what is shaping up to be a historic and cataclysmic economic event born out of our general debauched view of leverage. (Barry Ritholtz: thanks for the Thesaurus idea- I hope I didn’t embarrass myself!)
So, what does that mean for Visa? If you look at the proceed distribution, according to Dealbook, it is rather interesting to note that $1.25 billion goes to:
Even so, the offering will generate a windfall for Visa’s thousands of member banks, which own the company. JPMorgan Chase is expected to reap about $1.25 billion, while Bank of America, National City, Citigroup, U.S. Bancorp and Wells Fargo are likely to receive several hundred million dollars each.
Wall Street firms, in the meantime, stand to collect upward of $500 million in underwriting fees from the sale.
At the same time over 75% of the recent IPOs that had been scheduled have been postponed or cancelled as the market is not capable of capitalizing new issues when it it is so close to margin calls. VISA’s get-it-to-market-and-fast attitude for their IPO is a flagrant and obvious bailout for a few of the institutional beneficiaries. Time is the ultimate enemy in this mêlée against insolvency. The money is needed and it is needed NOW!
So, the VISA IPO is a GO!; no matter how much better it would have priced if times were different. I think that with the potential for insolvency increasing, postponing could be a prove disastrous for one or two of the member banks desperately needing a fast infusion of cash to continue business as “usual.”
(V) (BAC) (NCC) (JPM) (C) (USB) (WFC)
Disclosure: Clients of Horowitz & Company clients hold positions of BAC as of the date of publish.
March 17, 2008
Guests: Zach Scheidt, Harry Dent and David Gaffen. Markets and the future with all that occurred this week is our initial topic. David Gaffen of the Wall Street Journal along with Harry Dent, famed author and economist, provide some clues as to where the markets and the economy is heading.
Zach discusses VISA IPO and the state of the market provides some great tips on profiting from IPOs. Are we going to crash or have we reached bottom? We introduce, The ZachZone in this episode, a segment to become a regular part of The Disciplined Investor Podcast. This is an episode that will help you profit.
One hedge fund Zach manages strictly invests in IPOs as well as new equity issues. Zach brings great insight along with a refreshing and honest view of what is billed to be the BIGGEST IPO in history. VISA is being touted as a top play by the investment bankers, even in this horrible market. Yet, we look a bit deeper to see if this is actually something that will be of benefit. (visit ZachStocks)
Zach is the founder and Managing General Partner of Stearman Capital, LP. After graduating with honors from Lee University, he attended Georgia State University at night while beginning his career in the securities industry. He received his MBA in 2001 and also achieved the Chartered Financial Analyst designation in 2003.
Zach is also an avid writer and periodically publishes articles on individual securities as well as sector and general market themes. He is a regular contributor to Seeking Alpha and has been quoted in numerous financial publications including the Wall Street Journal, TheStreet.com and Yahoo! Finance. A participating member of the Atlanta Society of Financial Analysts, Zach maintains an active profile in the Atlanta investment community.
Stocks Mentioned in this and recent episodes: (V) (BSC) (LEH) (SPY) (SAFM) (GS) (MER) (QID) (SKF) (QQQQ) (IBKR)
on Thursday, March 20th. CLICK HERE….
Guests scheduled for upcoming Episodes: Bill Cara, Mike Huckman, Robert Reich