Speaking of manipulation, following is an article from BusinessWeek, week of May 17, page 120. It is not about BKS, but might give you some hint. You can also read the entire article at businessweek.com
FRIENDLY INVESTORS. Of the 25% of the stock that went to retail customers, some 20% went to the clients of Goldman's elite rank of 420 brokers, who serve only the wealthiest of the wealthy, competitors estimate. The remaining 5% went to Wit Capital, of
which Goldman owns 20%, and GS-Online, which Goldman just launched in April to act as an underwriter of IPOs via the Internet.
Goldman's purpose in controlling the process so tightly? Some rivals say that its main motive was to price the stock low enough to ensure that it would appreciate greatly and thus trade at a premium to its two competitors, Morgan Stanley Dean Witter and Merrill Lynch, at least initially. Sources close to Goldman say that the goal was to place stock with long-term investors and friends. Says one: "This is our company and our stock."
By Leah Nathans Spiro in New York
P's: I don't know if BKS is manipulated or not, but obviously GS doesn't like traders and they did control their own IPO tightly. Maybe we will not see BKS shooting up before BNBN IPO at all. This is not necessary a bad news. Especially for long term investors.
Disclaim: The behavior of GS to its own IPO does NOT explain BKS' recent performance. |
