The Fritz Demopoulos China Internet Top And The 2011 IPO Horror Show
- Posted by bbishop
- on November 30th, 2011
Of the 8 China Internet IPOs in 2011 only one–Qihoo ($QIHU)–is above its IPO price.
My understanding is that the remaining China Internet IPOs in the pipeline have been postponed either into 2012 or, for the unluckier ones, infinity. What looked to be a banner year for China investment bankers has turned into another difficult, low-paying slog.
Does anyone doubt that Qunar founder and CEO Fritz Demopoulus top-ticked an Internet bubble for the second time when he cashed out to Baidu ($BIDU) for a $306m investment in June? No way could Qunar have listed in this environment, and the valuation on any investment would have dropped significantly from June to today. Fritz is brilliant, incredibly hard-working, creates his own luck and has exquisite timing. I sold all my China Internet stocks within days of the news of the Baidu-Qunar deal. Nearly 6 months on the “Fritz Demopoulos China Internet Top” still holds.
There is another month left in 2012 and all these stocks could have miraculous recoveries. Good luck to those who want to bet on that, though for longer-term investors there may be good values in some of these names.
The charts of the 2011 China Internet IPOs are ugly, and for first day investors most of the shares are not even worth 50 cents on the dollar.
Qihoo, March 30 IPO price $14.50, November 29 closing price 16.10, 11% gain.
21Vianet ($VNET), April 21 IPO price $15, November 29 closing price $9.28, 38% loss.
NetQin ($NQ), May 5 IPO price $11.50, November 29 closing price $6.47, 43% loss.
Jiayuan ($DATE), May 11 IPO price $11, November 29 closing price $7.21, 34% loss.
Phoenix New Media ($FENG), May 12 IPO price $11, November 29 closing price $5.21, 52% loss.
Taomee ($TAOM), June 9 IPO price $9, November 29 closing price $4.78, 46% loss.
Tudou ($TUDO), August 17 IPO price $29, November 29 closing price $11.82, 59% loss.
The bankers certainly earned their fees, albeit at the expense of IPO investors who did not flip almost immediately.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Bill Bishop is an American living in Beijing. He is bilingual and has experience working in both US and China. In 1997 he co-founded CBS MarketWatch and stayed until the sale in 2004 to Dow Jones. He was never a journalist, and instead worked in several business roles over the years, the last as head of the MarketWatch consumer Internet business. More »
- Sinocism China Newsletter For 08.30.12
- The Sinocism China Newsletter
- Today’s China Readings July 18, 2012
- Sina Sell-Side Still Searching For Muppets
- China Daily Readings
- Sina Admits It Has Not Complied With Weibo Real Name Registration Rules
- Groupon’s China Firesale
- Apologies For The Hiatus
- Tweeting The Sina Q4 2011 Earnings Call
- Quick Thoughts Ahead Of Sina Earnings
- August 2012
- July 2012
- May 2012
- April 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- Inside Sina Weibo
- Reuters: China VIE Company Structure Under Threat
- Authorities Removing Apple iPads From Chinese Store Shelves? (Updated)
- Is Tencent The Wrong Partner For Groupon In China?
- China's Internet: The Invisible Birdcage
- If Sina Is Cooking Its Books I'll Eat This Blog
- Jack Ma Talks To China Entrepreneur Magazine About The Alipay Case (UPDATED)
- Do You Know Where Your China Stock CFO Lives?
- New Report On China's Online Game Industry-$3.6B in 2009 Revenue, $9.2B By 2014
- China's MIIT Declares Most VoIP Services, Including Skype, Illegal
TagsAdvertising Alibaba Apple Baidu Beijing cctv Censorship china China Mobile Corruption Cyberwar DangDang eCommerce Facebook Fraud Gaming GFW Google Group Buying groupon Internet Investing IPO Media Mobile Music Netease PerfectWorld Piracy Policy Readings Regulations Search Shanda Sina SNS Social Games Tencent Twitter US-China Virtual Items Web Video Weibo WoW WVAS
- Group Buying
- Internet Security
- Listed Firms
- Online Games
- Online Memes
- Online Payments
- Online Trends
- Perfect World
- Public Relations
- Renewable Energy
- Social Gaming
- Traditional Chinese Medicine TCM
- Web Advertising
- Web Video
- World of Warcraft
StockTwits - All Updates