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I told u all to if u read the threadSo it was $33.81 at noon. Damn, it would have been nice to have bought a grip of put options.
Edit dok did, I agreed
the real valuation came up to $28 before the banks and Zucka proped it up to rob the dumb mother ers
even $28 is too high. But I think at $25 ppl would actually buy it
I told u all to if u read the threadSo it was $33.81 at noon. Damn, it would have been nice to have bought a grip of put options.
Edit dok did, I agreed
http://blogs.wsj.com/marketbeat/2012...view_wsjlatest
May 21, 2012, 10:28 AM
Facebook Shares Tumble: Where Are the Underwriters?
As Facebook shares tumbled below their IPO price on the second day of trading, the bankers’ role in supporting the stock price is taking center stage.
The shares, which recently traded at $33.65, down 12%, repeatedly tested its $38 initial public offering price during its debut on Friday, with lead underwriter Morgan Stanley (MS) reportedly stepping in to keep the stock from breaking through its offer price. A Morgan Stanley spokesman on Friday wouldn’t confirm or deny the bank’s role in keeping the stock above its $38 level on the first day; the stock ended Friday up less than 1%.
As the stabilization agent on the deal, Morgan Stanley fills the role of ensuring an orderly market in the stock in its first days of trading.
Though it’s under no legal obligation to prevent a company from declining below its IPO price, on most major offerings, the lead investment bank will step in and start buying shares of a stock to keep shares at least flat with their IPO price at the close of trading. That support can continue beyond the first day, depending on the deal and the bank.
The method used to provide this stability relies on an underwriting agreement known as the over-allotment option that gives the bankers the ability to buy or sell an additional chunk of shares as needed. The typical share amount in an overallotment is 15% of the total offering, which was the case in Facebook, giving underwriters an extra cache of 63.2 million shares to use as a means to support the stock.
The process is common in IPOs and works like this: The underwriters have the extra shares available to either sell or buy for a period after the IPO. If demand is strong, they sell them like all the other shares. But if the stock price falls, they can buy them back, effectively creating a floor for the price.
However, Facebook’s total shares sold–421.2 million–combined with heavy first-day trading volume–means that bankers’ ability to buy had a limit.
Morgan Stanley didn’t immediately return calls Monday seeking comment on supporting the stock.
Why Facebook's stock is tanking
Reality has taken hold. The company's valuation is still out of whack, despite its massive user base.
http://news.cnet.com/8301-1023_3-574...g/?tag=nl.e703
When a company has as much expected growth as facebook does, there's basically no way to justify the quarterly decline in revenue it just had.
anyone who thinks Zuckerberg gives a about shareholders
"as much expected growth"
.... revenues, not only in members and page hits.
I'm thinking $25 is too high, but that is admitted bias rather than knowing their probable financial future. I just do not see money to be make for stockholders in this type of site.
I'll take bottom fishing for $19.
Low $20s is in the ballpark, but I wouldn't even begin to think about touching it until after the lockup period is over.
it already dropped about 15% on open trading day...lol hype
lol. Surprise!
I'll bet that coke you bought tastes pretty damn good right about now.
I might buy a coke with the proceeds after the commissions.
lol....yup. I was pretty sure it was gonna run up on hype, let me make about 20-30% and dump. Glad I only played a 100 share buy and got out with a tiny gain. lol @ Morgan Stanley with about a bazillion shares and about zero hope of recovering.
I guess the answer to the OP question, "So, is Facebook worth $38 a share?," is a resounding NO.
Down another 5% @ 32.
This. Lets see what the price is after insiders flood the market with sell orders.
And now comes some news about the Facebook (FB) IPO that buyers deserve to be outraged about.
Reuters' Alistair Barr is reporting that Facebook's lead underwriters, Morgan Stanley (MS), JP Morgan (JPM), and Goldman Sachs (GS) all cut their earnings forecasts for the company in the middle of the IPO roadshow.
This by itself is highly unusual (I've never seen it during 20 years in and around the tech IPO business).
But, just as important, news of the estimate cut was passed on only to a handful of big investor clients, not everyone else who was considering an investment in Facebook.
http://finance.yahoo.com/blogs/daily...133648905.html
Royally ed by the banks
once that piece of news reaches the masses, I expect Facebook to plummet to under $20
I thought it was pretty hilarious when GM announced they were pulling their advertising from FB a day before the IPO.
If there was any communication at all between Facebook and its underwriters regarding the analysts' estimates, Facebook will likely be on the hook for this, too.
LOL Commiting crimes on day 1 of your IPO
damn, why can't I buy puts!
Prolly cause no one in their right mind wants to take a short position on puts
just zuckerberg working on part 2 of The Social Network
he'll probably make more money from the movie than his stock
LOL, agreed.Prolly cause no one in their right mind wants to take a short position on puts
However there is no option chain at all. Anyone know if this has something to do with the IPO.
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