Pandora Becomes A Busted IPO (P, SIRI)

Media

Published: June 16, 2011 10:31 am

Last Updated: March 27, 2020 12:19 am

Pandora Media, Inc. (NYSE: P) is one which we were skeptical on and we warned investors that it was a value hat trick, but not just because of its business model. This was a Wall Street trick and investors fell for it. The company raised literally about twice what was originally anticipated. Only about one-tenth of the company’s authorized shares are in the float.

Now it is trading under $16.00 IPO price after what appears to be a post-IPO peak price of about $26.00 yesterday. We saw over 40 million shares trade hands yesterday when just 14.7 million shares traded hands. You know that only a portion of those shares were resold by IPO-flippers.

If Pandora did accomplish one thing, it seems to have helped drive down SIRIUS XM Radio inc. (NASDAQ: SIRI). SIRIUS XM is back under $2.00 at $1.93. It turns out that all that conviction from short sellers has started to win for them.

At 10:23 AM EST we see that 5.2 million Pandora shares have traded and the stock is down 9% at $15.85. UPDATE: Shares closed at $13.26 with a drop of 23.8% today!!!

Enough said.

JON C. OGG

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