Source: youtube.com
I thought this was a very appropriate video for this story. In 2017, IPO's had a banner year as 80% of them has negative earnings.
We appear to be entering the era where money is proving to be just paper. Probably worth less than the paper it is written on. It is becoming very apparent that today, people have no concept of value. They are still chasing the almighty dollar as they did in the past. What has changed is the thought process.
In the past, financial mavens resorted to relying on trends found by pouring over mundane concepts like EPS, asset to debt ratios, net income and R/I spending. Today these figures are virtually useless as TPTB have 'painted the tape' so that what once used to be reality is now a menagerie and we are the animals, or shall I say we are the sheep.
When you look at stocks like google or amazon, today's major movers under the microscope using criteria which was used in the past to determine if they were good investments. These companies have no real assets to produce future wealth, their whole business concept is based on providing a service. Not to say that providing a service has no value but the value is miniscule in comparison to a manufacturing concern. The profit margin of a manufacturer is many multiples higher than a service provider. Manufacturing and innovation are the concepts that once made America the leader, sadly not for long.
Source: zerohedge.com
Sorry for the rant. It is clear why new companies are failing after their IPO. There is no economic engine driving the future revenue. It seems to be easy to sucker investors to plop down money based on a 'white' paper which is filled with pipe dreams. Investors are trapped because they have to hit their return goals (ROI) but they have little to choose from with the exception of companies like Google and Amazon, and let us not omit Tesla. Which reminds me of all the solar shell companies like Solyndra. Please tell me that this was not a sham company started by Obama. See link
Bottom line is we have been sold 'down the river'. I don't only blame the politicians, I also blame you and me as we voted them in and stood by watching them sell our once great country down the river just for a free Obama phone.
