Friday, June 28, 2013
Marin Software: Not Ready For Prime Time Yet
Small Cap Insight
Any time a stock falls 50% shortly after an IPO one has to wonder if the market isn't offering a bargain now. Currently the IPO process is so subjective to market forces and short-term market momentum that a stock can move 50% in either direction irrationally. Typically the process of deriving the offering price is built for obtaining a reasonable price though it usually leaves money on the table for those buying at that price.
In the case of Marin Software (MRIN), investors at the IPO price haven't seen much to smile about as the stock peaked at nearly $20 on the opening day and has done nothing but drop to $10 in the three months that it has been public.
Read the full article at Seeking Alpha.
Disclosure: Long MM. Please review the disclaimer page for more details.