tag:blogger.com,1999:blog-32841798.post6977049720148980584..comments2024-03-28T09:55:42.123+00:00Comments on Capitalists@Work: Oatly: Failure of the capital marketsCityUnslickerhttp://www.blogger.com/profile/15929544047783163175noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-32841798.post-52268923220084135872020-07-16T11:36:34.997+01:002020-07-16T11:36:34.997+01:00perhaps misguided. but i see two trends at work
so...perhaps misguided. but i see two trends at work<br />so much cash sloshing about in private hands and a desire to spend it.<br /><br />public listing is expensive and hard work. slightest slip of twitter or hint that your paperwork is not in order and you have various feds all over you. they do love to make an example of the little chap. and face it $200 on nasdaq is not the big league these days.<br /><br />so raise the cash from the names, hang out with them. much more fun than keeping the teenage scribblers from writing something nasty or your finra docs uptodate. <br />wont stop it ending in tears if it all goes wrong though, passim wework. <br /><br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-32841798.post-70556464401443393882020-07-15T17:39:41.010+01:002020-07-15T17:39:41.010+01:00Thing is, the celebrities are there to make the mu...Thing is, the celebrities are there to make the mugs think "that's something I should be in on". It's a ponzi scheme until it hits the actual stock market.<br /><br />The valuations on Oatly, Uber and others is based on a small amount of equity sold that is multiplied up. So, Oatly sells 10% for $200M therefore it's worth $2B.<br /><br />Only it isn't until they can sell the majority to the suckers at IPO. They aren't (outside of Softbank) going to find private money mad enough to get burnt for the inflated valuation.<br /><br />Not all are like this - AMZN being a counterexample. There are also problems with non-voting stock which does lead to control being left with the founders and the stockholders not having much say.Matthttps://www.blogger.com/profile/08141297358269863170noreply@blogger.comtag:blogger.com,1999:blog-32841798.post-44566460174441358792020-07-15T10:12:12.880+01:002020-07-15T10:12:12.880+01:00Swiss Bob, exactly. the fastest frowing bit of the...Swiss Bob, exactly. the fastest frowing bit of the PE sector is 'secondaries' funds which buy from other PE companies. So little is going near the market. <br /><br />Matt - early investors in Amazoon, Uber etc have made many thousands of percent profits.You are I do not get a look in - fine, we never did. But neither do our pensions funds. Meanwhile, Oprah Winfrey is a talk show host and worth billions. CityUnslickerhttps://www.blogger.com/profile/15929544047783163175noreply@blogger.comtag:blogger.com,1999:blog-32841798.post-56353106199197310742020-07-14T18:00:52.857+01:002020-07-14T18:00:52.857+01:00Oatly or not, you make a good point. Too often a l...Oatly or not, you make a good point. Too often a listing looks like the sale of last resort, when the owners or PE cannot do another private round or flip the company to another buyer... except the markets and pension funds. All too often recent IPOs and their underperformance tend to confirm this.Swiss Bobnoreply@blogger.comtag:blogger.com,1999:blog-32841798.post-83964709965725072372020-07-14T17:51:05.884+01:002020-07-14T17:51:05.884+01:00Let's wait until the fad wears off and see if ...Let's wait until the fad wears off and see if the rich do indeed get richer. More likely is that when the sales drop off they have an IPO to sucker the public in at that stage.Matthttps://www.blogger.com/profile/08141297358269863170noreply@blogger.com