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Because stupidity doesn't deserve a lot of space to be discussed, I'll keep this really brief.
Uber is stupid for waiting so long to go public.
As I predicted, its IPO has gone over like a lead balloon. CNBC - bless 'em - charitably called it a "stumble" when the freshly minted stock dropped nearly 7%. I call it "bombed."
By going public now, with its reputation close to tattered, Uber is going to disenfranchise its drivers, who will collectively further distance the company from maybe ever making a profit.
As Forrest Gump (who may be underwriting stock issuances now that he's out of the running game) reminded us: "Stupid is as stupid does."
This stock was doomed from the get-go. Here's why...
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Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker.
The work he did laid the foundation for what would later become the VIX - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company's "listed" and OTC trading desks.
Shah founded a second hedge fund in 1999, which he ran until 2003.
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