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Monthly Archives: January 2012

Why Facebook Needs to do an ‘About-Face’

The year of the mega-tech initial public offering is over.

In the mad-cap, high profile race to win IPO glory, the stakes have gotten more risky, but at what cost?

High-stake tech IPOs seemingly have taken off from out of nowhere.  Pre-2010, the talks in the investment world were of retails and restaurants, now it seems every investment banker is chomping at the bit to take their rightful piece of the super-sized IPO pie; leaving would-be investors and actual small start-up firms out of the rat race.  The IPO market has been inundated with tech companies such as Groupon, LinkedIn, Zynga, Pandora and Zillow (just to name a few); all of which have gone public in 2011 with the expectations of large market share and even larger returns, but instead, they have fallen by the wayside.  Research shows that the majority of social media-related stocks continue to trade below opening-day price.  In fact, 62 percent of all IPOs issued last year are trading lower than their initial-day offer.  Data released from IPOScoop.com show end-of-year total return from prices issued were -3.05 percent compared to 2.84 percent total return for the NASDAQ Composite Index. (more…)

Big Three: Revving Up For a Better 2012

As automakers geared up for the start of the week-long 2012 North American Auto Show in the Motor City, the “Detroit Three” were firing on all cylinders. Industry experts predict a promising year for the U.S. auto market, and investors seem encouraged.

2011 sales figures released from GM, Ford, and Chrysler last week, revealed stronger-than-expected numbers.

General Motors Co. (NYSE: GM) “posted a 13 percent U.S. sales increase last year, to 2.5 million vehicles, gaining market share for the first time since 2002,” according to Automotive News. Sales climbed in part due to the 8.3 percent increase in the Chinese market from 2010.

Ford Motor Co. (NYSE: F) “said its Ford brand sales were up 17 percent in 2011. Overall, the automaker’s total U.S. sales added up to more than 2.1 million vehicles in 2011, a year-over-year gain of 11 percent. In December, Ford’s sales were up 10 percent,” said the Detroit News. (more…)