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LinkedIn share price tumbles through the floor

LinkedIn's share price has taken a massive tumble over recent days as investors, spooked by the downgrading of the USA's credit rating have begun reevaluating the wisdom of holding on to unproven stocks.

The outfit's initial stock offering caused waves and raised eyebrows - as well as a few bank balances - when its shares were offered on the New York Stock Exchange, back in May - at an initial price of $45 each. That valued the company at a hefty $3 billion, but was soon dwarfed by the first day's trading which sent the stock rocketing to $94.25 at close, boosting the notional value of the company to close to a staggering $9 billion.

As we wrote at the time, this trading was bonkers in the extreme.

Investors clamouring to grab themselves a slice of the outfit touted as 'the Facebook of business' would, we predicted, soon realise that the site is full of hot air and guff - a place in which users inflate their fantasy resumes in the hope that a high profile and numerous followers on the service would help promote their search for a better job.

A short trawl through the pages of a few old associates of ours reveals that those with a loose grip on reality and an inflated sense of self sound the most impressive in their own reckoning.

Information may be power but when that information is as reliable as that found on Linkedin it is of dubious worth to say the least.

Investors seeking sounder stocks and more reliable sources of income in return for doing nothing bit sitting around watching their tickers might be better advised to invest in emergency glaziers and broom-handle merchants in London, rather than faddish web sites that can shrivel up as quickly as they spring up.