Google going IPO

Smiley · Ktown FOB Gender: Age: 24 Joined: 13 May 2004 Posts: 70

What do you think the IPO price will be? You think it's worth buying or will be price be too inflated from all the hype?

I was thinking of buying if it's under $20. Anyone hear anything about this?

RVD · Posted: Sat May 15, 2004 7:41 am Post subject:

i don't think it will be under $20. well, there's a slim change it will ipo at something like $20 but when it opens trading it will be much higher than that.

RVD.
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statis · Posted: Sat May 15, 2004 5:34 pm Post subject:

Unless you got a huge account size, I doubt you'll be getting any shares of Google at $20. Those are reserved for the big guys.
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Smiley · Ktown FOB Gender: Age: 24 Joined: 13 May 2004 Posts: 70

I Heard google's gonna be the first company to Auction off their shares. I need more info. Please let me know if you hear anything.

RVD · Posted: Mon May 17, 2004 3:49 pm Post subject:

i know all about it....

basically, it's a dutch auction. google will release 150 million shares in the auction. people bid...individuals bid, etc.

the 150 million shares for the IPO will go at the IPO price that will be determined by this auction.

say there are bids for 1 billion shares...the highest guy is willing to pay say $100,000 for 100 shares...the cheapest guy is willing to bid $5 for 10000 shares, etc.

well, they will start from the the top...and go down until 150 million shares are taken up. the ACTUAL price of the IPO will be the cost of the 150 million-th share. so if the guy that is 150 million down the line is actually $35.98, then the guy who bid $100,000 per share will get his 100 shares...at $35.98 each and not his $100,000 that he bid.

to bid? open an account with CSFB or morgan stanley. don't call then right now...i've spoken to them and they are a bunch of morons. nobody knows what's going on. as more info becomes available, i'll let you all know.

RVD.
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nah...no sig.

Smiley · Ktown FOB Gender: Age: 24 Joined: 13 May 2004 Posts: 70

Thanx RVD! Sounds complicating. Do you plan on buying some?

RVD · Posted: Mon May 17, 2004 4:44 pm Post subject:

it's not that complicated. people bid but they end up buying at the lowest price that is accepted.

it's a standard dutch auction. say i have 5 playstation consoles to sell. i'll sell it to the top 5 bidders but they all get it at the lowest accepted cost.

so if i get 6 bids....

1 - $180
2- $175
3- $170
4- $169
5- $165
6- $160

the top 5 guys will get the playstation and they will all pay $165. even the top guy that bid $180 is only going to be paying $165.

RVD.
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nah...no sig.

RVD · Posted: Mon May 17, 2004 4:44 pm Post subject:

i plan to buy some shares...
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nah...no sig.

Smiley · Ktown FOB Gender: Age: 24 Joined: 13 May 2004 Posts: 70

RVD, How much do you plan on bidding? Do you think there's a minimum?

RVD · Posted: Tue May 18, 2004 11:29 am Post subject:

i'll probably bid like $50/share for 100 shares (so that's $5k). if it ends up that $20/sh that would be cool. i'm predicting more like $30-$35/sh but i'll give more predictions as it gets closer.

RVD.
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nah...no sig.

money · Posted: Tue May 18, 2004 12:07 pm Post subject:

Smiley · Ktown FOB Gender: Age: 24 Joined: 13 May 2004 Posts: 70

It seems like average Joes like you and I can't bid for a piece of the pie. This is what I read...

"Before you can submit a bid, you will be required to qualify by obtaining a unique bidder ID and by meeting an underwriter’s account eligibility and suitability requirements."

Sh*t out of luck

Solid · Posted: Tue May 18, 2004 6:11 pm Post subject:

IPO's are usually reserved for the big institutional investors. Google is making some of the shares available through a Dutch Open IPO process, but in all likelihood the percentage of the offering available to the public will be less than 10% of shares offered.
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RVD · Posted: Wed May 19, 2004 9:16 am Post subject:

i guess the process of getting an account with be difficult and they'll just reject most investors. anyway, we'll see how it goes.

this isn't a normal IPO where only the big investors have access to shares. google is doing the dutch auction process for 2 reasons:
1) to get a better price and more money than the traditional method of allowing the investment bank to set the IPO price
2) allow "normal" people to get in on the IPO instead of just the big institutional investors.

RVD.
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nah...no sig.

RVD · Posted: Mon Jul 26, 2004 11:23 am Post subject:

estimated price...$108-$135.

RVD.
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nah...no sig.

Smiley · Ktown FOB Gender: Age: 24 Joined: 13 May 2004 Posts: 70

Yeah I read that article today. That's way too high for my budget. I try to stay away from stocks that go above 50 bucks. The most expensive I bought was Nike at $50 something last year during the whole Lebron and Freddy Adu hype.

RVD · Posted: Mon Jul 26, 2004 3:09 pm Post subject:

well, the price of the stock alone shouldn't matter that much but when you look at the total number of shares and P/E ratio....this stock is a joke at this price. i think i'll wait about 3 months after the IPO....or if i'm feeling it...i'll short it early on if i can get in on short action.

P/E is basically going to be like 50...or 100 depending on how much profit google reports this year.

RVD.
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nah...no sig.