1-Star Stocks Poised to Plunge: LinkedIn?

• Report this Comment On May 24, 2011, at 2:14 PM, chang07 wrote:

  Brian,

  It's nice to see TMF is cautioning investors these days, a huge departure from the early days of TMF (1990's).

  Now, here's a fact from following small businesses and entrepreneurs: only 56% of all companies will survive 3 years, and only 29% will remain after 10 years. I say this because public or private, it's tough to start and run a business. Here's the reference: http://smallbiztrends.com/2008/04/startup-failure-rates.html

  I raise this issue to compare against your figure of IPO's trading after their 1 year anniversary...sure, this is not surprising. Also, here's another risk, most stocks will fail.

  Why do we invest? Because the rate of return from 1 winner is greater than that of the money sitting in the bank for 1 year: 0.25 to 0.75% (depending on the amount in the money market fund).

  Why is it not like Vegas or any casino? Because if taught, investors can have control, and get out with a majority of the funds intact. Then, we choose the next big thing. There's always stocks available for investing regardless of the climate.

  TMF should teach investors when to get off the roller-coaster if they could; the view from the top should be scary and if it doesn't scare you then you like riding the roller coaster down. I don't. I'd rather have Kingda Kong stop at the very top and let me off, I'm not scared of heights, only what happens when 4 tons of steel comes back down.

  LNKD is different from the fliers of the 1990's, as small as they may be, LNKD does have revenue. Different from those dot.com's that launched on fumes, and 1 year of cash.

  I'm happy you brought up MWW, who's having their lunch eatin' by Craig's List right now. As for Dice, never heard of them before, which should give you pause.

  Nice article, keep printing that LNKD will plunge. We'll see.

  It's gonna be fun...

• Report this Comment On May 25, 2011, at 3:50 PM, anjaan1 wrote:

  About Linkedin.

  The rise & fall of Empires, always occurs.

  LNKD seems to have a Business Model & plan.

  How can LNKD prosper ?

  What would Investors like to see ??

• Report this Comment On May 26, 2011, at 12:43 AM, nat18466 wrote:

  Remember Google's IPO @ $85. Its is successful due in part to it being unique. Linkedin is also unique and wins because it is a site where people can connect with others based on similar interests. This is how a social network is successful. My interest in Linked in stems from the fact that it is a social network that has its anchor based in business and employment. It is currently an American standard type of business like Google.

  Without lecturing the obvious - social networks will drive this new age of business.Gone are the days of TV commercials and newspapers alone.

  Remember Netflix? It not the math that wins here its the innovation.I go long.

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