CEO & Partner, Parisian Family Office. Began Wall Street career in 1982. Founded investment firm, Native American Advisors, 1995. White Earth Chippewa, Tribal Member. Raised on reservations. Conservative. NYSE/FINRA arbitrator. Pureblood, clot-shot free. In a world elevated on a tech-driven dopamine binge, he trades from Ghost Ranch on the Yellowstone River in MT, TN farm, Pamelot or CASA TULE', their winter camp in Los Cabos, Mexico. Always been, and will always be, an optimist.

Monday, March 18, 2019

LYFT to IPO?

With the company expected to trade at only 10x revenues and less than a -$1 billion annual loss, this deal looks exceptionally compelling!  How could the underwriters let this go at such a cheap price?  Truly disgraceful!

Here is what I wrote many years ago.

"IPO’s are not part of our methodology for several reasons.  Most of their problems stem from the deliberate underpricing of new shares, which creates a huge wealth transfer from a newly public company to the customers of an investment banking firm.  Shareholders are better off in the long run with a higher net worth than with an artificially and temporarily high stock price. IPO’s are allocated to clients who pay the big commissions. Those responsible for the well-being of a company are the directors.   If they were held liable for the eradication of corporate assets, the mispricings would end.  At Chippewa Partners we don’t play the IPO game by paying commissions for syndicate allocations, period.  Our only focus is making money for our clients."


Dean T. Parisian, Chairman,  in a letter to Barrons and The Wall Street Journal