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Best of the Blogs: Except for Facebook, New Stocks See Large Gains on First Day of Their IPOs


Plus, e-books keep chipping away at print's market share.

This column highlights the most interesting and useful business and financial commentary from around the Web each day. Use our comments section to post your own suggestions for blog content that you've read or written.

The Wall Street Journal
Link: IPO First-Day Pops At Highest Point Since 2000

"For IPOs, first-day pops this year are generating better-than-usual returns.

"The average first-day gain for US-listed IPOs this year is 16.2%, above the average of 13.3% seen during the last five years and at the highest level since 2000, when the average was more than 50%, according to data tracker Dealogic.

"A few strong performances helped nudge this year higher, including a 108% pop from Splunk (SPLK) in April, a 92% gain for Millennial Media (MM) in March and an 89% gain from Annie's (BNNY) in March.

"One notable exception was Facebook (FB) in May, which rose only 0.6% on its first day of trading after bouncing repeatedly off its $38 IPO price. The stock tumbled as much as 33% in the ensuing weeks before bouncing back a bit."

Link: E-books Are Booming, and Still Sort of Small

"No surprise to anyone who reads a site like this one: Sales of e-books are booming.

"But just like most media formats, the book market is still a long way from converting completely to digital: Last year, print accounted for 85 percent of the publishing industry's general interest sales.

"That number comes from the new BookStats survey, sponsored by two industry groups. It finds that Amazon (AMZN) and other digital distributors are taking an increasing chunk of the market, and that sales of "trade" e-books - basically, everything except educational and professional texts - doubled in the last year."

Time: Business
Link: Intel's Earnings Warning is an Ominous Sign for the Tech Sector

"Citing the weak global economy, Intel (INTC), the world's largest microchip-maker, lowered its financial forecast for the rest of 2012. It's an ominous sign for the technology sector, which is entering the heart of earnings season. Reporting second-quarter financial results, the closely-watched tech bellwether revised its revenue growth projection downward to between 3% and 5% - below the previous forecast of 'high single-digit growth.'

"As policymakers seek to return America to healthy growth and employment, Intel's lowered outlook is a clear reminder that the global economy - and Europe in particular - is placing a drag on the U.S. economy. Tech stalwarts like Apple (AAPL), Google (GOOG), IBM (IBM), Intel, and Microsoft (MSFT) have been powering through the recession. If these companies falter, the U.S. is in trouble."

The New York Times: DealBook
Link: Consumer Watchdog Fines Capital One For Deceptive Credit Card Practices

"The nation's consumer watchdog on Wednesday delivered its first enforcement action against the financial industry, fining Capital One (COF) for pressuring and misleading more than two million credit card customers.

"Capital One, one of the nation's biggest banks and credit card lenders, agreed to pay $210 million to resolve the case, the latest legal setback to the financial industry."

The Financial Times: Alphaville
Link: We Told You Negative Rates Were a Big Deal

"Though, for a long time we've felt very much alone with this obsession. Weirdly enough, nobody else has seemed too bothered about it. (Note, we even had to go to the ECB directly to ask Draghi what he thought about it.)

"Indeed, much of the industry still seems to think negative yields may be transitional.

"We, however, are not so sure about that. In fact, we don't understand why analysts aren't factoring in deflation scenarios when assessing real interest returns more frequently, since doing so might even show that negative yields aren't as bad an investment as you think. (In fact we'd love to see under what sort of deflation scenario today's negative yields might even look like a good investment.)"

Link: 75% of World Has Access to Mobile Phones [STUDY]

"Approximately three quarters of the world's population now has access to a mobile phone, according to a new study from the World Bank.

"The number of mobile phone subscriptions has skyrocketed over the past 12 years. Less than 1 billion mobile subscriptions were active in 2000, while there's six billion subscriptions active today. Last year alone, mobile users downloaded more than 30 billion apps."

Twitter: @ChrisWitrak
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