You do have valid point. However, recent reports in the trade publications suggest that companies will perhaps be more conservative in the number of shares that they release for public sale, i.e. taking a leaf out of LinkedIn’s playbook.
While this approach might initially inflate share price, I do sense that the IPOs will not be as gratuitous or as mercenary as they have been in the past. So along that vein, management for several of the companies appear wants to maintain a certain amount of control of the business; they want to build the business; and be around for the long haul…
]]>Facebook value $50 billion; revenues less than $800 million. Compare with Boeing: value $55 billion; revenues over $60 billion.
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