LinkedIn Weathers A Potential Storm, At Least For One Day (LNKD, QPSA, RENN, SINA, UNTD)
Shares of LinkedIn (LNKD), the social networking site for professionals, are modestly higher and that’s pretty good news when considering today is the first day the newly public stock is free of short-selling restrictions. Eager short-sellers probably haven’t been able to really sink their teeth into LinkedIn because of a small float and the fact that the stock is probably hard to borrow, perhaps leading to exorbitant fees to short the shares.
LinkedIn’s decent performance is helping the Social Networking Stocks Index to a gain of 0.6%, but more headwinds could be on the way for the stock that is viewed by many as a barometer for the future success of other forthcoming social networking IPOs.
Lawrence Haverty of Gamco Investors said in an interview with Bloomberg News that LinkedIn could trade all the way down to $30 after insiders and early investors are allowed to sell their shares. Insiders and money managers have 85.7 million Class B LinkedIn shares that cannot be sold until six months from the IPO, according Bloomberg.
Haverty called LinkedIn a “magic show” and said the only question for investors is how soon should they sell.
Investors can track the Social Networking Stocks Index for performance trends and a suite of other metrics at tickerspy.com.
More on this topic (What's this?)
Reflections on the LinkedIn IPO and the Usability of LinkedIn Itself (Phil's Favorites, 5/20/11)
Reflections on the LinkedIn IPO and the Usability of LinkedIn Itself (GreenLightAdvisor Views, 5/20/11)
Reflections on the LinkedIn IPO and the Usability of LinkedIn Itself (Wall Street Sector Selector, 5/19/11)
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