Read This Item, Then No Need To Watch CNBmute

Radio station WINS in New York, the pioneer in news radio, has the slogan All News All The Time.  Watching CNBmute this morning, you would think it is All Alibaba All The Time.

Touted as the biggest IPO ever, situated in China, partly owned by Yahoo, a mystical name, a hot sector, it has it all to capture the attention of the media.

The IPO will come out, bid up, make millions for lots of people but the retail investor will largely be uninvited to the party.   That's because the investment banks running the book will allot the initial shares to favored clients, i.e., Biggies.  Others will wait outside the soup kitchen, licking lips, watching in envy, and then some will swoop in immediately to buy shares when they are available to the general public.  Some will make money, some will lose.  Our view is not to get caught up in the initial undertow and to wait until the shares trade more in line with fundamentals.