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Come On and Take a Free Ride

Mod Note: Blast from the Past - "Best of Eddie" - This one is from June 2011.

Freeriding : The illegal activity of buying a stock and selling it before paying for the purchase. - Investopedia

While I was thinking about writing a post about the power once wielded by Series 7 stockbrokers, I started to think back to some of the funnier episodes from back then. It occurred to me that, while a great many things have changed, some have remained the same. What specifically came to mind is the recently bubblicious nature of the tech IPO market, and how similar it was to the IPO market of 1993-95.

Back then, I worked for a firm with a very hot hand in the IPO market. You could say it was our specialty. In 1993 we brought 15-18 deals (I don't remember the exact number), and they each rose an average of 52% (later verified by USA Today). The public had IPO fever; you could literally dial a US phone number at random and if an English-speaking male answered (we didn't do business with women), there was a 50/50 chance you could sell him an IPO on that phone call.

Recommend a Phone? iPhone? Samsung Galaxy? Blackberry?

I'm thinking of replacing my phone "iPhone 4" now that the time limit is up and am thinking what phone to get. So far my list (not in any specific order):

1. Samsung Galaxy S4
2. HTC One
3. Nokia Lumia 920
4. Blackberry Q10
5. iPhone 5

Wanna get some thoughts on the WSO community. I've used an iPhone, and blackberry in the past, but I'm sure I won't have trouble getting adjusted to the Android Platform.

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WSO Weekly Wrap-Up 06/08-06/14

In case you missed them, here's some of last week's most popular topics:

How WSO Has Enhanced My IB/PE Career


I randomly discovered WSO nearly seven years ago just weeks after I secured a FT MM IB position. The website was extremely nascent at the time with only a few thousand registered users.

Fun Things I Discovered While Perusing the Compensation Database


So, I've taken some time to peruse through WSO's 2013 Compensation Database, and it's honestly awesome.

Finance Culture Personalities


I come from a small town where nobody had ever heard of consulting or IB. I was fortunate enough to attend a top target college (a good Ivy) and land a gig in IB at a BB/EB. I'm starting full time this summer.

Leaving Good Job For IB Internship

Fun Things I Discovered While Perusing the Compensation Database

So, I've taken some time to peruse through WSO's 2013 Compensation Database, and it's honestly awesome. I've been on WSO for a while, from my time as a bright-eyed undergrad trying to break into a summer analyst gig, to my time as a jaded banking analyst, seeking out the greener pastures of private equity. The site has always provided tremendous value.

With that said, I think the 2013 Compensation Database is among the most interesting and useful things I've ever seen on the site. The sheer amount of information is astounding, and the presentation and formatting would please even the most hardass of Managing Directors.

I highly recommend you do what you have to do to gain access to it. Whether that's adding info a review for the company you work for, insight into an interview you had, or detailing your comp last year, it's worth it. Plus it's anonymous, so there's no fear of anyone finding out who you are.

Now, I'm not here today to drone on about the benefits of the database, rather, I'm here to share a few of the fun things I found while I was digging through it. Read on to find out what I found...

When Will the Chinese Learn?

Apparently, someone forgot to pass along the message to the Chinese that the most important part of government bond auctions is making sure they can't fail. Bond auctions should function more like Storage wars, where there is always a buyer, than what happened in China. Here's the story out of China this morning .


The finance ministry sold only Rmb9.5bn ($1.5bn) of the Rmb15bn in government debt on offer, the first time in nearly two years that Beijing has fallen short of its target bond sale. The failure stemmed from a jump in money market rates that has occurred because the central bank has refused to pump liquidity into the economy despite signs of stress in the banking system.

Long story short, rates have spiked and markets have tightened up over the past few months without the central bank injecting short term liquidity into the market. Also, look at that 7 day repo... almost 7%! Juxtapose that against ours at all but zero. Anyway:

WSO Conference 2013: Reason #14 To Join Us

There are 14 days remaining until the conference (June 29th) and each day we'll be listing off another reason for why you should join us at the conference.

Reason #14: The 4 Discussion Panels: Throughout the day there will be four 60-minute discussion panels, each composed of 3-4 finance professionals plus one moderator. The fourth panel is entitled "Options Outside of Investment Banking: Prop Trading, HFs and Consulting". 20 minutes for the panelists to talk about their background and opinion on the matter, and then a 40 min Q&A with the moderator and audience.


Grab One of the Last Discounted Tickets Today (40% Off!)


See inside for more reasons...

Bonus Bananas June 14, 2013

1) 39-year-old ex of retired 83-year-old Wall Street exec is now on welfare -- and thinks she deserves more $$$ (NY Post) - Now I'm not saying she's a gold digger... Heartwarming story here. Side note: if you've been in the business 52 years and you've only got $26,000 to your name, you're doing it wrong.

2) Rupert Murdoch files for divorce (CNN) - Must be the season. Here's another May-December romance gone sour. What do you wanna bet ol' Emperor Palpatine finds himself a nice 22-year old slammer next?

3) Scaramucci Seeks Money for Manhattan Hedge-Fund Hangout (Bloomberg) - Mooch has the right idea here. What New York needs is a 1980's Gordon Gekko-type hangout where even the back office troglodytes can feel like somebody special.

Leaving good job for IB internship

Hello fellow monkeys,

So I have a bit of a dilemma here. I'm a 22-yo guy, BSc Economics from a top flight European B-School with decent, though not awesome grades. After graduating last year, I moved out of town to work for a startup, and after a couple of months I got a job in a very famous incubator / VC fund based as investment mgmt analyst. Salary is really good, though a tad below 1st year IB analyst, hours are more than decent (70ish per week, even less sometimes), and the city is quite cheap.

Techniques on when to enter/exit a stock after due research: help!

So, you have done your research, covered all the corners, done your time/risk/return valuation and now you have to enter a position. I've tried to read as much as i could (hoping to have missed not so many things) that was related to this topic in this forum and in the internet and basically i found out that:

1) It's super hard no matter how you look at it
2) Technical analysis maybe be good but which specific indicators should i look at?
3) Forecasting tools (time series) are useful but subject to error (or really?). Hence, are they useful at the end of the day?

WSO Conference 2013: Reason #15 To Join Us

There are 15 days remaining until the conference (June 29th) and each day we'll be listing off another reason for why you should join us at the conference.

Reason #15: The 4 Discussion Panels: Throughout the day there will be four 60-minute discussion panels, each composed of 3-4 finance professionals plus one moderator. The third panel is entitled "Banking and Trading Survival Tips". Panelists will offer up perspectives on how to navigate office politics and long hours. 20 minutes for the panelists to talk about their background and thoughts on the matter, and then a 40 min Q&A with the moderator and audience.


Grab One of the Last Discounted Tickets Today (40% Off!)


See inside for more reasons...

Misguided Efforts: A Cautionary Tale

When I first started as a PE analyst, I constantly struggled with judging the amount of time I should spend on reviewing sourced deals. How much time is enough to really get a handle on the company's revenue streams? How granular do I need my analysis to be on industry threats? With this anecdote I hope can help others that were in my position navigate a little more clearly.

Refresher: a typical analyst's/associate's responsibilities when it comes to reviewing sourced deals are generally to:
1) Pull all publicly available information on the company (in case of private company, read bank's CIM or other available info)
2) Examine documents to understand business model and underlying growth opportunities
3) Build out operating model with recent historical and projected financials
4) Create an LBO model and run sensitivity analysis
5) Write summary/business outlook assessment

5 Signals You're Unknowingly Sending at Work

This comes from Business Insider. A fellow WSOer posted it elsewhere so I apologize for double-poaching, but I think that while the article's rules may not be universally applicable, it makes some good points. Do you guys think about these things?

[quote]When it comes to how you're judged at work, you might think that the quality of your work is all that matters. But human perceptions are a lot more complicated than that, and you might send signals that you don't realize or intend.

Here are five of the top ways that you inadvertently send signals about yourself at work - and how your boss and co-workers might read them.

WallStreet Prep Master Financial Modeling