http://noir.bloomberg.com/apps/news?pid=20601109&sid=al2kgKoKVwAc&pos=10
“This is not something we even consider investing in,”said Haverty, who helps oversee $35 billion in Rye, New York.“This is a sideshow. It’s a magic show,” he said. “The only question for the investor is how soon they should sell.”
“There’s no way you can justify its valuation,” said Shacknofsky, who helps manage $7 billion in Purchase, New York, for Alpine, which invested in the IPO and sold the shares on the first trading day. “It’s very difficult to understand its valuation. It’s trading on short supply because it wasn’t a big offering to begin with, and a lot of people who wanted exposure to a quality social-networking play bought it.”
“The winds are blowing against this thing being worth $9 or $10 billion,” said Haverty. “Wall Street has created an artificial price because they didn’t release that many shares. They underestimated the demand. This happened all the time during what we now affectionately call the bubble period” of the late 1990s, he said.
“It happened in the late 1990s quite often, where you have these stocks that are essentially concept stocks,” said Barish, who oversees $8 billion as president of Denver-based Cambiar. His Cambiar Aggressive Value Fund beat 99 percent of peers in the past year with a 65 percent return. “The problem is there’s so little operating history. You have absolutely no idea what these businesses are going to look like in a couple of years.”
“This is not something we even consider investing in,”said Haverty, who helps oversee $35 billion in Rye, New York.“This is a sideshow. It’s a magic show,” he said. “The only question for the investor is how soon they should sell.”
“There’s no way you can justify its valuation,” said Shacknofsky, who helps manage $7 billion in Purchase, New York, for Alpine, which invested in the IPO and sold the shares on the first trading day. “It’s very difficult to understand its valuation. It’s trading on short supply because it wasn’t a big offering to begin with, and a lot of people who wanted exposure to a quality social-networking play bought it.”
“The winds are blowing against this thing being worth $9 or $10 billion,” said Haverty. “Wall Street has created an artificial price because they didn’t release that many shares. They underestimated the demand. This happened all the time during what we now affectionately call the bubble period” of the late 1990s, he said.
“It happened in the late 1990s quite often, where you have these stocks that are essentially concept stocks,” said Barish, who oversees $8 billion as president of Denver-based Cambiar. His Cambiar Aggressive Value Fund beat 99 percent of peers in the past year with a 65 percent return. “The problem is there’s so little operating history. You have absolutely no idea what these businesses are going to look like in a couple of years.”
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