"….there are several aspects of the issue that leave many observers feeling distinctly uneasy. Here is a company that has no assets on the ground, and no history of project execution, getting a value on the market that is many times higher than established and successful companies in the same field of business, namely power generation. The many risks associated with investing in such a company have been listed in the issue documents, including the uncertainties surrounding some of its projects — like the lack of assured fuel supply. But investors (including institutional investors who are professionals and who therefore should know what they are doing) have not been deterred…”
Thursday, January 17, 2008
Irrational Exuberance -II ?
I find Alan Greenspan has already used up the expression “irrational exuberance” to signify the dot com boom of 2000. Then I read this story on Reliance Power IPO in the BS story today. Excerpts -
And you thought institutional investors and professionals got brass balls...? Come on, get a life pal....! They represent a bunch from where even sheep learnt to herd up. Just this one difference. The poor animals have a better reason in that they feel secure when bunched together. These guys do it so that when their calls go horribly wrong, on a peer to peer comparison all will look alike, deep in shit. No one guy will look or smell better than the other.
Over to Mr.Greenspan. "Now Alan, what would you choose to call this frenzy in this part of the world… IE-II…?"