Monday, May 03, 2004

Stick it to them, Google!

In one of the more bizarre pieces about the upcoming Google IPO, an unnamed writer at claims that Big Funds Could Pressure Google for Better IPO Prices. Why Google should give a rat's tail for the preference of big institutional investor, though, leaves the writer grasping at straws - "Some fear that distributing the shares to an unusually large number of individual shareholders could increase Google's costs for communicating with investors and might even hurt the stock's performance."

The institutions are able to bid alongside everyone else in the auction and neither deserve nor warrant any special consideration. There's nothing they can do for Google that's positive, and a lot they can do that's negative - such as focusing on short-term issues.

Google's better off ignoring these bozos and letting them fend for themselves on the open market. It might do the fund managers some good to actually have to work for a profit rather than have companies give them one on a silver platter balanced on the backs of small investors.

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