Seeking Alpha by Adding Beta

Welcome to sequel of Internet Bubble - Part II. The way Netscape IPO created first Internet Bubble when its shares jumped from $28 (IPO price) to $75 on first day in 1995, we can see almost similar bubble time reaction to Last week's Linked IPO. The shares were issued at $45 which itself was very high given that just six months back they were at $20 in private market. On first day, it went all the way to $122 before settling down at $94 giving its valuation equal to 40 times of its last year's sales. Is this another bubble around "social networking" companies or what ? Given this action around LNKD, I won't be surprised to see Facebook as first company having $100 Billion valuation on day of its IPO which would be sometime in 2012. Groupon may have around $15-20 Billion valuation on first day. Are these valuations sustainable. At least folks buying on first day think so since similar concerns were raised in 2004 when Google went IPO. But eventually Google not onl...

Last Sunday US Navy Seals killed Obama by going deep into Pakistan and finishing the job in 40 minutes. Since 9/11, all world was waiting for this event which took nearly 10 years and hundreds of billions of $$ if you include cost of two wars. Finally it took some good intelligence work by CIA, bravery of few good men, not trusting supposed "partner" (Pakistan) in this war on terror and most importantly decision to go forward with raid by President Obama. Well done Mr. President ! World is much safer and better place without Bin Laden. Market reaction was usual - initial euphoria on killing of Laden news gave away with nervousness due to heights markets have reached and uncertainty going forward. The sell-off gained momentum especially on Thursday with rout it commodities market with many of them down by double-digit %. So is commodity bubble busted ? In short term, it looks like. It all depends on how US economy holds up in 2nd quarter and Chinese actions on slowing down i...