Glencore Floatation - Pure Greed or Capitalism at it's best - [ZUG] - Page 2

ukal123 · #21 05.05.2011, 16:00

Someone wrote a Book about Mark Rich, thought it was really well written and quite exiting thought very un ethical...

Check it up

The king of oil

dino · #22 05.05.2011, 19:31

One thing you can almost be sure of, is that this is very near the top of the commodity cycle.

Look back to 1999 when Goldman Sachs went public. Or Blackstone in 2007. Markets topped out within months in each case, and the suckers who bought into the IPO hype lost money.

And it makes sense when you think about it. These guys sit at the centre of the market and have more visibility than anyone else. When they think the brown stuff is about the hit the fan, their obvious choice is to sell and run...

Transformer · #23 11.06.2011, 11:51

I'm sure a lot of you are aware with the Time Value of Money analogy in Finance, which basically is as simple as

- "Consuming 1$ today will buy you more then say 1$ in 2 years time"

and then you build up on that concept and say if I let go the chance to consume 1$ today - I need something as a reward to let go that chance to consume.

and then you complicate the concept more by looking at the risk of getting something out that 1$ in future for example you take that 1$ and invest in Greek/Euro Bonds you definately want a substantially bigger reward then say investing in the UK Bond market.

Risk / Reward...

and then you categorize the different risks involved so on and so forth...

Do you think this is Greed or Capitalism or is there more to it?

Are we not willingly participating in this Greed or Capitalism?

other alternatives would be Sharia Law or some sort of State rule.

Would you give a loan of say 1000$ to a friend for the next 3 years without expecting anything in return?

fatmanfilms · #24 11.06.2011, 13:27

	Quote:	The_Love_Doctor
	Well that depends entirely on the residential status at the time when they sell the shares that they get... eitherway the tax might be lower but the purchasing power gap between these guys and the locals is still gonna be wide enough to drive the locals out...

There is no capital gains tax on CH on movable assets so selling the shares creates zero tax liability in CH

fatmanfilms · #25 11.06.2011, 13:34

	Quote:	dino
	Look back to 1999 when Goldman Sachs went public. Or Blackstone in 2007. Markets topped out within months in each case, and the suckers who bought into the IPO hype lost money.

That's neally not true for Goldman Sachs Shareholders, there may have been a few days when the shares traded below the floatation cost, but not for long.

Anybody buying GS at the IPO will be very pleased with their investment relative to the DOW Jones index. FWIW only 12% was floated at the IPO, they were not looking for suckers they just wanted a float.

http://finance.yahoo.com/q/bc?s=GS+Basic+Chart&t=my

EDIT I just checked the prospectus the floatation price was $53, so a great investment from day 1!
http://www2.goldmansachs.com/our-fir...s-pdf-file.pdf