I read a great article today about the initial public offer of another social networking site (you might call it Facebook for business types..) See here - http://www.investordaily.com.au/cps/rde/xchg/id/style/11714.htm?rdeCOQ=SID-0A3D9632-A21F9F5C
Now that we're nearly three years down the track from the GFC we had to have (cos everyone now tells us it was inevitable, really) it appears there's a whole bunch of new people willing to pay inflated amounts for shares in company which, lets face it, is not really big on "tangible" outcomes.
Yes, information is power.Yes, its good to be connected. And yes, networking in the business envirnoment may bring dividends in how we go about doing our business and who we do it with.
But really, $100 per share for a stock that so far, is little more than a respectable (& I'm not inferring for a moment that its anything less than completely respectable here) business introductions agency, which promises to "help you get the most from your professional network"?
With a decade of 50%+ pa earning increases required before it can pay a dividend, the only way investors in this will make a buck is on the hope that there are a bunch of later investors willing to buy their stock from them, not because it is a better stock, but because they think it's a better stock and lots and lots of other later investors agree with them.
Oh yes, we learned a whole lot from the GFC, didn't we kids?
Question: Anybody know any new dotcom stocks we can all get in on?
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