Ladies we may have missed something big! Apparently, last week presented the best odds for having for a child with the birthday 12/12/12. Haha..how RIDIC!! Jeez the Chinese are so crazy about numbers and this whole 'Year of the Dragon.' Anyway I'm totally fine to let that window pass. However, I'm not as happy about missing YELP. The stock is +62% on its IPO Debut (so first day of listing on the exchange). This does sets up very nicely for the much anticipated Facebook IPO later this year. I'm a pretty avid Facebook user and am excited to see how this IPO fares.
Personally I don't Yelp. Actually it's a drawbacks of living in Asia. We're not exactly on the cutting edge of technology. So every time I'm in US/Europe, I find myself super excited with everyday apps like open table, pandora, heytell. That said, investing in these kinds of companies can be scary for even the savviest tech users. Particularly anyone spurned by the dot com bubble.
Remember the motivation for investing is simple. You want to be an owner and want to share in the profit (or earnings). That said, companies like Facebook/ Yelp etc don't really have established earnings records yet. They're busy growing the business and that requires a lot of cash. This is the motivation behind seeking out public investors in an IPO. It makes investing in these types of companies both exciting and a bit of a gamble.
In other exciting news, Lady Gaga is coming to HK. Her career serves as an apt analogy here. What if we had the opportunity to invest in a Lady Gaga (or Justin Bieber) early in their careers? Basing our decision on the cash they were generating at the time would have been near-sighted and pretty moronic. Similar logic can be applied for start-up companies. This is why you employ other metrics like Sales, Visitors, Growth etc. It's not easy and these investments do require much more foresight and intuition. But..you know what the say about a women's intuition? Good luck!
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