NEW YORK (Real Money) -- They were all around me, these silly characters. They paraded onto the floor of the New York Stock Exchange Wednesday, and they might as well have worn Cole Porter signs that said, "We're the top!" Because they sure were, at least for the cohort that is the endless parade of initial public offerings.
Rarely have I ever seen an accident waiting to happen as I did with the deal for Candy Crush maker King Digital (KING). I don't blame management, either. As I said to the CEO Riccardo Zacconi: Look, your banker did you a real disservice. I compared the story positively with Zynga (ZNGA) just a week ago and I had high hopes that, if the deal were priced right, money could be made.
But after the declines in the IPOs from last week -- and they are all down horrendously -- it's suddenly a changed world. It had to be obvious to the banker that you had to price this one at the lower end of the $20-to-$22 range. They ran the books. They had to have had an advanced peek.
That is why I told Zacconi to go tell the investment banker, "Thanks for nothing, you clown." There are few things more damaging for a company's image than a broken deal.
On paper the deal made sense, because the company is profitable. It was not Zynga. It makes money and it has a decent price-to-earnings multiple. But the fact is, this market could not handle a $7 billion deal. It might have been able to do so even 10 days ago, before all of this merchandise came, again -- though only if it were at the low end of the range. I have to tell you, when you are in the thick of things on Post Nine in the New York Stock Exchange, it's clear as day that this one "didn't have the votes."