Losses Descending a Staircase

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I happened to come across an article this afternoon describing the desperate attempts for firms seeking to go public to get it done while “market conditions” allow. If memory serves correctly, five firms cancelled their IPOs last Friday since the market had the audacity to be down slightly.

A few recent IPOs have been particular stinkers, including coupons.com (COUP), which has lost about half its value since it went public last month, and even worse, Castlight (CSLT). The aforementioned article had just one comment:


I was curious to see what the chart looked like, and it’s pretty much a scream. You want a consistent-performing stock? I’ve got it for you right here:


It’s down 60% for the lucky so-and-sos who jumped onto the IPO. And keep in mind, this abysmal performance is in the context of a generally insanely-high and supportive market. Can you imagine these IPOs if a bear market actually took hold? Pink sheets, here we come!