Facebook Ipo

[midas]

classic pump and dump IMO

people should have remembered the previous tech bubble

but this time it was going to be different

[midas]

ZUCKERBERG SAYS FB "NOT FAIRLY VALUED BY MARKET" EVENTHOUGH P/E NORTH OF 100

Edited May 21, 2012 by midas

[HappyInCM]

ZUCKERBERG SAYS FB "NOT FAIRLY VALUED BY MARKET" EVENTHOUGH P/E NORTH OF 100

Reference?

[Darrel]

Facebook has always seemed to me to be about a load of idiots talking crap to morons (so rather like most of the rest of the internet in fact).

With this IPO they have just brought wbankers into the equation.

And it looks like even the bankers shot themselves in the foot with this one, which of course they richly deserve.

I would never touch FB even with someone else's bargepole.

[ExpatJ]

100 p/e. tech bubble history. Clear hyping campaign. A lot of investors used their emotion over analysis in buying fb shares.

Personally I think it's hilarious. All those utterly inane fb addicts who jumped and bought fb stock...

[bendix]

Facebook has always seemed to me to be about a load of idiots talking crap to morons (so rather like most of the rest of the internet in fact).

With this IPO they have just brought wbankers into the equation.

And it looks like even the bankers shot themselves in the foot with this one, which of course they richly deserve.

I would never touch FB even with someone else's bargepole.

I'm not sure how the bankers have shot themselves in the foot . . . the estimated fees for advisers (banks, underwriters, lawyers etc) on an IPO of this size will be a cool $100 million.

[bendix]

I think it will raise to 80-95usd after opening, and stay there for most of the day, but a bumpy ride. Guess it will close around 80usd.

How did that forecast work out for you, george?

Do you have any other hot tips?

[cdmtdm]

perhaps we will see a sequel to the first flick they made about zuckerberg and fb ..... no face book ....

[Asiantravel]

Facebook has always seemed to me to be about a load of idiots talking crap to morons (so rather like most of the rest of the internet in fact).

With this IPO they have just brought wbankers into the equation.

And it looks like even the bankers shot themselves in the foot with this one, which of course they richly deserve.

I would never touch FB even with someone else's bargepole.

I'm not sure how the bankers have shot themselves in the foot . . . the estimated fees for advisers (banks, underwriters, lawyers etc) on an IPO of this size will be a cool $100 million.

but they've damaged their reputation even further if that was at all possible

but then again no one gives a stuff about reputation these days

reputation and $.50 will get you a cup of coffee

[bendix]

Shares down sharply this morning currently trading around 33 bucks.

As usual whenever banksters are involved its fishy

Price Decline Raises Stabilization Questions

As Facebook Inc. (FB) shares declined below their IPO price on its second day of trading Monday, its bankers' role in supporting the stock price is taking center stage.

http://online.wsj.co...521-708805.html

How is it 'fishy'?

Once again people totally misunderstand the role of banks in an IPO. Banks have two distinct functions in an IPO. They provide advice on the IPO and work to get institutional investors interested in the offering and they also act as underwriters to the share price. In other words, if there is a danger that the share price doesnt float at the price the banks themselves advised the client suggested listing at, they step in and buy lots of the stock at that price to support it.

In this way, they are making a sacrifice, by buying shares at a price other investors dont want to pay. This invariably happens on listing day. What they then do with those shares is up to them: hold and hope or - if the price remains lower than they bought them for - sell at a loss.

How this is fishy is beyond me. It is banks acting and taking financial punts to support their advice on behalf of their clients. It's the polar opposite of fishy.

[midas]

[bendix]

Facebook has always seemed to me to be about a load of idiots talking crap to morons (so rather like most of the rest of the internet in fact).

With this IPO they have just brought wbankers into the equation.

And it looks like even the bankers shot themselves in the foot with this one, which of course they richly deserve.

I would never touch FB even with someone else's bargepole.

I'm not sure how the bankers have shot themselves in the foot . . . the estimated fees for advisers (banks, underwriters, lawyers etc) on an IPO of this size will be a cool $100 million.

but they've damaged their reputation even further if that was at all possible

but then again no one gives a stuff about reputation these days

reputation and $.50 will get you a cup of coffee

You're just making noises, with no substantive argument.

How have they damaged their reputation. They advise FB on a list price. The list price looks on the high side. However, when the market decides that the real price - set by market forces - is lower, they step in to back their judgement by buying at that list price.

THAT IS THE ROLE OF THE UNDERWRITING BANKS!

That you don't understand the basic functions of capital markets is no reason to come up with bland cliches about things you dont have a clue on.

[bendix]

[media=]

[/media]

Well, when you put it that way, midas, it's hard to find a flaw in your argument.

[Darrel]

I'm not sure how the bankers have shot themselves in the foot . . . the estimated fees for advisers (banks, underwriters, lawyers etc) on an IPO of this size will be a cool $100 million.

They had to support the price on the first day. Must have cost them a packet.

[Darrel]

The next bit of fun will be when all the new employee millionaires will be allowed to sell their new shares. Just a few weeks away.

[bendix]

I'm not sure how the bankers have shot themselves in the foot . . . the estimated fees for advisers (banks, underwriters, lawyers etc) on an IPO of this size will be a cool $100 million.

They had to support the price on the first day. Must have cost them a packet.

That's precisely my point. They did the right thing. They advised on the list price, got it wrong and have to pay financially.

Now they are in an interesting situation - back their judgement and wait to see if the price goes up over $38, or take a financial hit and cut their losses.

[Nana Cowboy]

Facebook clearly has a high valuation but it's not higher than Google or Apple were in their IPOs. Linkedin has a PE over 600 right now compared to Facebook's 78. All over the net 90% of the news stories and message board postings are negative about Facebook stock. All this jumping to conclusions after 2 trading days is ludicrous. A headline yesterday looked like it was written over the weekend with the details left out. "The Facebook Selloff: Will It Recover?". LOL, total insanity. Let the stock trade for a while, they aint going BK tomorrow. George said 80 on ipo day; no that didn't happen but FB will get there eventually. You'll see a little pop today and as soon as good news comes out about this stock it will soar. In the meantime there's a lot of little guys with weak hands who need to sell

Edited May 22, 2012 by Nana Cowboy

[samsiam]

I think it will raise to 80-95usd after opening, and stay there for most of the day, but a bumpy ride. Guess it will close around 80usd.

.....were you drunk when posting this ??....seriously.....yet to see such a ...hmmm...whats the word.....eager prediction..

Edited May 22, 2012 by samsiam

[samsiam]

They say FB is worth more than McDonalds now......you want fries with that Zuckerburg ??

[Nana Cowboy]

Yes it is more than MCD, PEP, HPQ, 5 X K, 5 X HSY and the list goes on and on

[Nana Cowboy]

I have an idea for George, go public with Thaivisa. Whats the symbol going to be?

FB opened the premkt session at 33.48 and sits at 33.76 right now. -.02 from afterhours yesterday

for anyone who wants to follow very early trading

http://www.nasdaq.com/symbol/fb/premarket

Edited May 22, 2012 by Nana Cowboy

[samsiam]

I have an idea for George, go public with Thaivisa. Whats the symbol going to be?

I predict a rise to 38 million and settle around 98% under the opening within 24 minutes......but based on the free labour model here....who knows

[midas]

Facebook clearly has a high valuation but it's not higher than Google or Apple were in their IPOs. Linkedin has a PE over 600 right now compared to Facebook's 78. All over the net 90% of the news stories and message board postings are negative about Facebook stock. All this jumping to conclusions after 2 trading days is ludicrous. A headline yesterday looked like it was written over the weekend with the details left out. "The Facebook Selloff: Will It Recover?". LOL, total insanity. Let the stock trade for a while, they aint going BK tomorrow. George said 80 on ipo day; no that didn't happen but FB will get there eventually. You'll see a little pop today and as soon as good news comes out about this stock it will soar. In the meantime there's a lot of little guys with weak hands who need to sell

You'll see a little pop today and as soon as good news comes out about this stock it will soar.

ok let's give them the benefit of the doubt and wait eagerly for any astonishing

announcements ........but if their business model is based on

charging subscribers for access they are toast

Edited May 22, 2012 by midas

[Asiantravel]

Facebook has always seemed to me to be about a load of idiots talking crap to morons (so rather like most of the rest of the internet in fact).

With this IPO they have just brought wbankers into the equation.

And it looks like even the bankers shot themselves in the foot with this one, which of course they richly deserve.

I would never touch FB even with someone else's bargepole.

I'm not sure how the bankers have shot themselves in the foot . . . the estimated fees for advisers (banks, underwriters, lawyers etc) on an IPO of this size will be a cool $100 million.

but they've damaged their reputation even further if that was at all possible

but then again no one gives a stuff about reputation these days

reputation and $.50 will get you a cup of coffee

You're just making noises, with no substantive argument.

How have they damaged their reputation. They advise FB on a list price. The list price looks on the high side. However, when the market decides that the real price - set by market forces - is lower, they step in to back their judgement by buying at that list price.

THAT IS THE ROLE OF THE UNDERWRITING BANKS!

That you don't understand the basic functions of capital markets is no reason to come up with bland cliches about things you dont have a clue on.

\

that's what worries me- i.e. they stepped in to back their judgement

you can hardly say they have got a good track record regarding judgement eh what ?

they dont care because they know they can always rely on on another bailout

Edited May 22, 2012 by Asiantravel

[midas]

Facebook At All-Time Lows; -31% From Highs

Insight: Morgan Stanley cut Facebook estimates just before IPO

The change in Morgan Stanley's estimates came on the heels of Facebook's filing of an amended prospectus with the U.S. Securities and Exchange Commission (SEC), in which the company expressed caution about revenue growth due to a rapid shift by users to mobile devices. Mobile advertising to date is less lucrative than advertising on a desktop.

http://www.reuters.c...E84L06920120522

" due to a rapid shift by users to mobile devices. " this is hardly an overnight phenomena ?

surely this trend has been evident for a very long time?

Edited May 22, 2012 by midas

[ExpatJ]

. You'll see a little pop today and as soon as good news comes out about this stock it will soar. In the meantime there's a lot of little guys with weak hands who need to sell

You were refering to a downwards 'pop' i presume? :-)

[bendix]

You simply dont understand the IPO process, Asiatravel

It could be argued they got it very right for their client - in this case Facebook. Facebook sold all those shares for 38 bucks; that is money in their bank account. That the price is now lower doesnt worry them; they raised the cash they wanted.

Had the banks advised to have a lower share issue price, their client would have left hundreds of millions of dollars on the table.

You could argue that banks do their job properly when the post-IPO price falls, and have failed in their job when the share price soars after issue.

[Asiantravel]

You simply dont understand the IPO process, Asiatravel

It could be argued they got it very right for their client - in this case Facebook. Facebook sold all those shares for 38 bucks; that is money in their bank account. That the price is now lower doesnt worry them; they raised the cash they wanted.

Had the banks advised to have a lower share issue price, their client would have left hundreds of millions of dollars on the table.

You could argue that banks do their job properly when the post-IPO price falls, and have failed in their job when the share price soars after issue.

Bendix I note your admirable attempt to defend the “ reputation “ of bankers involved in IPOs but

unfortunately for them “a series of accounting failures, fraud and other corporate scandals “

as discussed in this recent New York Times article seems to illustrate quite well the bankers attitude towards ethical behavior

Hong Kong Securities Regulator Seeks Penalties for I.P.O. Fraud

http://query.nytimes...63&ref=hongkong

Edited May 23, 2012 by Asiantravel

[canuckoverseas]

I'm waiting for the thaivisa IPO

Edited May 23, 2012 by canuckoverseas

[midas]

once again the little guys get shafted

" what looks like a bombshell scandal is emerging.

Reuters reports that the Financial Industry Regulatory Authority may investigate charges that bankers might have shared the negative news with some investors, but not all.

If true, this stunning allegation could lead to an enormous scandal involving not only the bankers but also Facebook executives, says former Wall Street analyst Henry Blodget, who runs Business Insider, a financial website."

http://www.thedailyb...erm=Cheat Sheet

Edited May 23, 2012 by midas