IPO Buzz:
"Although the IPO calendar has been closed for the traditional Labor Day break, Wall Street was busy restocking the new-issues shelves. Last week 16 companies filed to go public. They were looking to raise about $2.6 billion. Those “sweet 16” deals made last week one of the busiest filing weeks in over eight years."
The self-fueled momentum feedback loop is still running hot and heavy, so Wall Street is taking full advantage by preparing another round of "supply". This pump and dump only ends when Etraders realize that they are the sole reason these profitless IPOs are going parabolic and if they don't keep throwing money at this junk it will all collapse. At which point, it will all collapse...
Tesla's price target raised to $400
The IPO Fund: Going vertical. Again:
Call/Put ratio (CPCE inverted) w/Russell 2000 Small Cap
Running out of fools with money:
It's one thing to have companies that have no profits/earnings, but these companies have no sales:
Puma Biotech
Revenue: $0
Market Cap: $8 billion
Intercept Pharmaceuticals
Revenue $1.6 million
Market Cap: $6 billion
Price/Sales ratio: 3,750 (the market average is 1.8)
Not a recent IPO, but any time United Airlines is at a new all time high, it's a clear sign that the cycle is getting late (as it was in 2007)
Running out of fools with money:
It's one thing to have companies that have no profits/earnings, but these companies have no sales:
Puma Biotech
Revenue: $0
Market Cap: $8 billion
Intercept Pharmaceuticals
Revenue $1.6 million
Market Cap: $6 billion
Price/Sales ratio: 3,750 (the market average is 1.8)
Not a recent IPO, but any time United Airlines is at a new all time high, it's a clear sign that the cycle is getting late (as it was in 2007)
(Canadian Pacific and Berkshire made new highs today as well)
Suffice to say, Wall Street will keep this up until the last fool is found and buried...
