LinkedIn Prices

Linkedin

 

Yesterday, LinkedIn (LNKD), the online professional networking service, priced a secondary offering of 8.8 million shares at $71 per share after reporting its first quarterly loss since its IPO back in May 2011.

So let’s review some numbers here because I am having a tough time with this one.

As of September 30, the company’s last 12-months (LTM) Revenues were $435MM and LTM Net Income of just over $10MM.    With add-backs from depreciation and amortization the company generated Earnings-before-interest-taxes-depreciation-amortization (EBITDA) of about $25MM.

LinkedIn’s May IPO raised $352.8 million for the company ($248 million in net proceeds) and and as of September 30, the company still has $387MM in cash and short-term investments on its balance sheet and no real debt.

LinkedIn offers three major products

  • Hiring Solutions: Revenue derived primarily from the sale of LinkedIn Corporate Solutions and LinkedIn Jobs products, selling LinkedIn Jobs on their website to enterprises and professional organizations.
  • Marketing Solutions: Revenue  derived primarily from fees received from marketers, principally advertising agencies, direct advertisers and user created ads that are displayed on their website.
  • Premium Subscriptions: Revenue  derived primarily from online sales of our Business, Business Plus and Executive subscription products. These are monthly
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Should You Leverage The S&P 500 In Your Portfolio

 

Recently I sat down to think of possible improvements that I can make that will enhance the performance of my Questrade retirement investment portfolio. By the way, if you’re looking to sign up to an online broker, Questrade is the one to go with. Stocktrades has an amazing Questrade Review you can check out if you’d like. Their commissions are the lowest I’ve seen and any Canadian should strongly consider using them as a brokerage.  Like most people, I have significant exposure to the greater U.S. equity markets with approximately 45% of my finance portfolio invested in large capitalization equities, which are components of the S&P 500 Index.

S&P 500

The S&P 500 Index tracks the combined performance of the 500 largest companies in the U.S.  So, buying a share in a mutual fund or Exchange-Traded Fund (ETF) that has an investment mandate to mirror the S&P 500 will give you returns equal to the index, less any fees and expenses related to managing the portfolio.  In other words, if I hear someone say “the S&P 500 went up 2% today”, then it is highly probable that about 45% of investment portfolio increased in value by 2% as well.

Now, I … Read the rest

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