Tuesday, May 19, 2015

Failed IPOs And A Blow-off Top In Junk

What could go wrong?

The most overvalued stock in the S&P 500 had a big day today
(Ok, it's probably not THE most overvalued stock)

Which made me want to see what was *new* in the world of pump and dump...

Four out of five of last week's IPOs failed: 
IPOScoop: May 19, 2015
"One was priced ABOVE its filing range and started trading 18.5 percent ABOVE its initial public offering price. 
Four were priced BELOW their filing ranges and started trading 4.28 percent BELOW the IPO prices."...

Here is an example of a recent "successful" IPO (for the insiders, I mean)

Down 50% in one month (but still above the placement price):

Here is one that was an outright disaster, now at $1.58:

Overall, inline with Netflix, we are seeing a blow-off top in risk:

Chinese Small Caps:

Top performing stock of the past 6 years:

Top performing IPO of past 12 months
Zero Revenues:

Top performing IPO of past two years
Zero revenues:

A very reliable indicator for impending risk (off)
Canadian Solar (down 5.6% today):

Etrade & Company Really Cashing In:

Growth / Value Ratio: Triple Top:

Mind that gap

The Nasdaq is lagging and has not confirmed the latest high in the Dow and S&P: