To Blackstone or Not to Blackstone...That's the Question

With all the hype around Blackstone's IPO, I had mentioned before the offering that it wasn't as good as a deal as it looked. The limited nature of the shares in the overall structure and expected returns, were not going to be there. Now with the potential looming increased tax rates, Blackstone will just become another stock that sucked the shareholders dry, not unlike what happened to the Vonage IPO...shareholders left holding the bag will wonder.


More reading here, courtesy of the Financial Times.


BX Chart since the IPO;

Considering IPOs? Read This First

Came across an interesting article at TheStreet.com. Remember that when an IPO is issued these days, it's a way for the company to raise cash when other methods have dried up, or, the principals are looking for ways to increase capital to maintain growth. Going public has its disadvantages, such as creating pressure to outperform in their respective sectors. Be aware that usually IPOs carry an expectation of longer term growth, as opposed to short term gains, unless you can get in on the initial offering action.

Interested in the Blackstone IPO? Think Again...

It's interesting to note the fanfare over the IPO offering of Blackstone, however, reading through the S-1 SEC filing, there are a few red flags to potential investors. Although there has been an improvement in their management fees in the past few years, this may not be sustainable, and essentially the offering does not give control to shareholders. This is in the management only, not the funds. Refer to this CNN Money article for details. Blackstone is trying to get the best of both worlds, without having the liability of having to perform for the investors.

Of course, the hype will run the price up, however, if you don't get in on that action, look for holding on to the stock for the long term.

IPOs - Interesting Information

There is a good article that summarizes IPO strategies...check it out here. Although not for everyone, there is good money to be made. Stay tuned.

Tim Horton's IPO - $23.16 a share

See the article with respect to the IPO for Tim Horton's...Friday trading should be interesting...anything over $50 isn't worth it.

Tim Horton's IPO - Coming Thursday, 23 Mar 06

Article gives more details on the Tim Horton's IPO, scheduled for Thursday, 23 Mar 06, target prices are $21-$23 per share.

NOTE: WENDY'S HAS INCREASED THE SHARE PRICE IN THE OFFERING TO $25-27 PER SHARE...IF YOU CAN GET YOUR HANDS ON SHARES, IT WILL BE WORTH IT IN THE SHORT TERM (added 21 Mar 06).