Categories
Economics

[399] of GOOG

GOOG is what Google is known to the investors in New York and everywhere else. And on Reuters:

SEATTLE (Reuters) – Friday the 13th was decision day for investors weighing whether to bid for shares in Google Inc.’s initial public offering. The big question now is, how many of them were feeling lucky on an unlucky day.

Google is probably the initial public offering of the year. Google is the most successful search engine ever; not only it is big, it is profitable. Last Friday was the last day for interested investors to register for the Google’s IPO auction. The price of the offering is expected to be announced today.

What is the most peculiar characteristic of this IPO, at least for me, is the auction itself. Now, auctions perhaps are typical when the issuer of IPO presents the shares to the underwriter. Furthermore, most IPO’s that I have heard of are sold at some predetermined price, if I am not mistaken. Google, through Morgan Stanley and Credit Suisse First Boston as the lead underwriters, is doing something unconventional. The IPO will be sold to the public, not to the underwriter, using a modified Dutch auction, also known as single-priced auction.

I do not know which part of the method is modified but through my financial economics class, I do know that the winners of the bid will pay the lowest winning yield for the shares. Take note, the lowest yield means the lowest cost to the issuer (borrower of the money). Now, let’s say there are three bidders, A, B and C and there are 40 units issued. All participants make their offers known. A want 20 units and offers 5.0% yield. B wants 20 with an offer of 6.0% yield and C wants 20 with 7.0% yield. C will lose out and both A and B will win the bid. At the same time, both A and B will pay out 6.0% yield. If A were to pay its initial offer, that would make the auction as something known as multiple-price auction.

Regardless of the method of offering used, each Google share is expected to range between $108 and $135. At the same time there are 25 millions shares available, making a possible capitalization at around $3 billions. That is a cool $3 billions.

It will be traded on NASDAQ, the home of the tech bubble. And this is financial history in the making.

And Blogger is part of Google and this site is powered by Blogger. I am proud to be part of it. Hmm…

p/s – I’ve just received an interview request from The Star, Malaysia. I am not really sure the person that sent me the email was referring to ReCom.org or ReMag, but hey, this is going to be fun. And I bet the special branch would take notice too. LOL! I’m flattering myself. Damn me.

Categories
Economics Science & technology Sports

[398] Of update in Enschede

Ajax has just beaten Twente three to two and is currently placed third in the Eredivisie standing. PSV earlier won five against two against Roosendaal and Feyenoord won six to one against De Graafschap.

Ajax managed to take a 2 – 0 lead by halftime. The first goal was scored by Tom de Mul, a rising star in Ajax that was promoted from the youth team earlier this season. Ten minutes later, van der Vaart made it 2 – 0.

In the second half, on the 46th minute, Ibrahimovic scored Ajax’s third goal. But Twente almost managed to catch up with Ajax. Two of their players, Karim Touzani and Blaise N’Kufo scored a goal each. Thank goodness their third goal never came.

Though I am a bit disappointed by Ajax’s low number of goals compared to the other big three teams, I must say I am relieve to see Ajax won.

On other update, Ajax has taken two Argentinian youths on loan with an option to buy them after the loan period ends. I heard that the two Argentinians are exciting.

From the inside, some youth team members have been promoted to the first team. One of course is Tom de Mul of whom scored for Ajax. The other is Daniel de Ridder, said to be the next big thing in Ajax. But we will see. There is still a lot of time for de Ridder.

On the goalie position, the younger Stekelenburg has finally replaced Lobont. Stekelenburg has also been selected into the Dutch national team as the first keeper. The national team is currently under Marco van Basten, an Ajax and a world football legend.

Cronyism eh?

Across the channel in London, Chelsea has just beaten the Red Devils, courtesy of Gudjohnsen’s goal. Sweeeeeeeeeeeeeeeeeeeeet!

Soccernet has this to say:

Mourinho seemed relaxed enough to lounge on the Chelsea bench, with his feet up and a wide grin on his face, an expression matched by his boss, Roman Abramovich, in the directors’ box.

I trust, many of us are still grinning. I know I am.

p/s – Holy crap! Somebody is aunctioning B$1 trillion on EBay, currently priced at $46! 46 bucks! Damn! This is getting out of hand.

Categories
Economics Sports

[397] Of the Olympics again!

The Olympics has officially begun!

Fair use. Associated Press pool photo by Ben Curtis of the Aug. 13 Opening Ceremonies fireworks display.

Thank goodness they managed to complete the Olympics Stadium.And, just to show how unpopular Bush’s foreign policy is, according to Wikipedia:

As a reflection of the unpopularity of the American-led War on Iraq, many audience members protested the entrance of the American delegation into the stadium by making a thumbs-down gesture.

Oh well.

p/s – Somebody just auctioned 5000 Blogshares chips on EBay. It is priced at $22.56 now. Damn, that is free money!

If the admins of Blogshares do not do anything, soon, real money will be used for trades on Blogshares. But damn! $22.56 for something that is not even real!

Categories
Economics Environment

[394] Of Bangladesh

Last Sunday, I attended a party (okay, okay it was lunch) along with a few field hockey people somewhere in the town of Ann Arbor. The food was enjoyable; we had tandoori chickens with some spiced rice and an ice cream cake. This coming Friday, there will be a party for the field hockey people again and then, another party (or lunch) on Saturday a week later. I think the field hockey club is starting on a tradition (from now on, I will refer field hockey as hockey. Ice hockey is irrelevent as much as calling football as soccer). A yum yum tradition!

The lunch started to get interesting when the conversion started. The conversion at first was about the game that we played on the previous day. It was a good game under a fantastic weather. The sun was bright, the sky was cloudless and blue, neither too hot nor too cold. It was heaven. We even had two MSU people playing with us.

Then, we talked about hockey still. It should not be a surprise that we talked a lot about hockey. It was a sort of hockey lunch in any case. This time, it is about the Olympics in Greece. There was one Australian there and he said it is going to be Australia. But the Netherlands shares the same group with the Kookaburras. So does India. So, it is too early for me to have that Australian confidence.

For me, the most disappointing part of the Olympics hockey is the Malaysian team absence. It is simply too bad Malaysia lost to England earlier during the qualifying round. Malaysia should have beaten the English but pity that this is going to be Malaysia’s first Olympics game without a hockey team in a long time. I wonder whether Malaysian hockey quality has gone down (Malaysia was ranked 10th in the world barely four years ago) or we just got unlucky.

The topic then shifted to India, Bangladesh and the Brahmaputra River. The conversation started off with the current flood crisis in Bangladesh where more than 2000 people have died. A person asked a question about the high casualties number. Somebody explained that Bangladesh is merely a quarter of Michigan Lower Peninsula’s size but has more than 125 million people in it. Therefore, if something happened, many would be involved.

After I got home, I did some research on that just to know more. By comparison, Michigan is about 250 000 km² with only 10 million people and Malaysia has a land area of almost 330 000 km² with only 25 million people. The contrast in density is drastic; Michigan 40 people/km², Malaysia 70 people/km². Bangladesh has a staggering 926 people/km²!

I did not make up the data, unlike the New York Post. All hail to Wikipedia, in my opinion the best online encyclopedia in the world. Give Wikipedia a visit and howl me at http://en.wikipedia.org/wiki/User_talk:Earth.

The person that asked the question earlier was not satisfied with the answer and pressed on for a better answer. He asked, if the river floods every time, why do people go there at all?

A depressing answer was given. The people of Bangladesh are poor. They have nowhere to go but the river. The delta is rich with alluvial, an extremely fertile type of soil. Their only hope of survival is the river delta. There is no other economic activity but agriculture.

Another question was fired, why don’t they migrate?

That is easy to answer. There is a cost to migration and poor people cannot afford expensive cost. Worse, nobody wants to accept too many Bangladeshis. In fact, nobody wants too many immigrants.

The last question, given the context of the discussion, strengthened my belief in globalization though I am not saying I agree with globalization with its current form. My notion of globalization is the free flow of capital and labor. The free flow of labor is possible for people from the first world and probably from the developing countries too. However, this is not entirely true for the Bangladeshis and the people from third world in general.

If only free flow of labor were possible for all of us regardless of countries, I believe poverty would be less of a problem, less of a crisis. I of course do think some restriction on labor is a must for the sake of the environment and sustainability.

I am thankful that I am not from the Brahmaputra delta. At the same time, I feel sorry for the people of the delta. It is heartbreaking to see people being stuck in such vicious poverty cycle. On the chessboard, it would have been an impasse.

Categories
Economics Environment Poetry

[393] Of the 393rd post

I need to sleep well,
but sleep is a waste of time,
so I will sleep late.

I want to sleep late,
but I will wake up late,
damned be dilemmas.

Damned be my eyes,
why cannot it be closed now?
I want to sleep well.

Still open I see,
and I see everything,
I need not see it.

Close I beg you please,
to see sunlight ere I sleep,
is too much to bare.

p/s – the recycling culture in Pittsburgh, Pennsylvania. Funny how the recycling culture opposition asserts that recycling is a waste of money. Pittsburgh city council on the other hand has this to say:

Costa said failing to recycle costs the city money. It’s paid $11 a ton for glass, cans and plastics and $30 a ton for newspaper, Costa said. Statewide, the average cost to take municipal trash to a landfill is about $57 per ton, according to the state Department of Environmental Protection.

Regardless of that, people who think recycling is wasteful usually forget about the main drive behind recycling: it is about reducing waste, not about making money.

And efficiency includes not merely greenbacks but also includes the utility of having a cleaner environment (unless you like an environment comparable to the dumpyard, maybe a cleaner environment is an griffin good for you) to name one. or the utility of having more trees to name two.

pp/s – BusinessWeek is running an issue on global warming. It is long but nothing is new except the part where the article claims the business sector is ahead of the Bush administration in term of policy and technology concerning global warming.