I would agree. It was vastly overpriced to start with. Years ago...I was an employee of SAIC, which was going finally public with an IPO. A lot of us had internal stock, and felt the $16 target was awful low. Once it started selling...we figured in twelve months that it would hit $30 a share. A year into this episode....it was around $18 a share. It’s been almost five years since that big event, and the stock is today trading at $10 a share.
The truth is that you just can’t tell about this stock business.
“...I was an employee of SAIC, which was going finally public with an IPO”
HCA stock has never reached it’s IPO either, although, I imagine, the Frists came out OK.
Believe me, there are experts who know the value of a company down to near the last paper clip. There's a bottom line liquidity, and those are the guys in control of the switches know it.
It is not uncommon for a stock to come out high then drop off. Given all the pre release hype, this was a good bet that their stock would come out of the gate, then slide down.
And goldman is supposed to be the smart guys?
Don’t a lot of goldman wizards end up at the highest levels of govt and finance?
Might be a case of promoting incompetence up and out.