Talking stocks, trading, and investing in general

[idfnl]



There is a price where Facebook would have popped, but $38 wasn't it. Odd that they were so fixated on a very high price going in.

Actually, this is really the way it should be. The objective of an IPO is to benefit the company, give it working capital, etc. The way the IPO system has worked has only served to benefit the banks and funds. In reality, no well done IPO should ever see a pop of more than a few %. The idea is to INVEST, not FLIP.

I think the expectations of this were so over the top that it will be viewed as a flop. I do think they priced too high, 100b valuation? GTFO... 30 would have been reasonable open. Maybe let it go to 33, but 38 was too high. Now there are a lot of people stuck in.

 

[idfnl]

Whoa...

http://www.google.com/finance?q=NASDAQ:FB

35.10
-3.13 (-8.19%)
Real-time: 9:33AM EDT

 

[idfnl]



Whoa...
http://www.google.com/finance?q=NASDAQ:FB
35.10
-3.13 (-8.19%)
Real-time: 9:33AM EDT

Double whoa....

FB
33.41
-4.82 (-12.62%)
Real-time: 9:48AM EDT

 

[otc]

This is a rare example of a place where pie charts are used well (click for full size):

 

[crispeta]

Is it sloppy to not reached out for AAPL eo last week? I mean, no matter what, that stock is probably going to reach the moon before Branson's Virgin Galactic..
I heard this Apple company is the new Dell and more recently they've started to interrupt Nokia's phone biz, too..

 

[cross22]

LOL @FB

(someone "like" this for good measure)

 

[SkinnyGoomba]



Actually, this is really the way it should be. The objective of an IPO is to benefit the company, give it working capital, etc. The way the IPO system has worked has only served to benefit the banks and funds. In reality, no well done IPO should ever see a pop of more than a few %. The idea is to INVEST, not FLIP.
I think the expectations of this were so over the top that it will be viewed as a flop. I do think they priced too high, 100b valuation? GTFO... 30 would have been reasonable open. Maybe let it go to 33, but 38 was too high. Now there are a lot of people stuck in.

I disagree, I think that is a bit one sided even though that is the basic idea. Accurate valuation is fair on both ends, the market does not seem to view this as accurate.

 

[sns23]



I disagree, I think that is a bit one sided even though that is the basic idea. Accurate valuation is fair on both ends, the market does not seem to view this as accurate.

The goal is to get as much money for the company as possible. Anything more than a single digit pop demonstrates that the shares were undervalued.

 

[idfnl]



The goal is to get as much money for the company as possible. Anything more than a single digit pop demonstrates that the shares were undervalued.

Judging by this result so far, Zuck fucked everyone good.

Was never a fair valuation. He took advantage of the hype and got an insane price. To be honest, I didnt expect this bad a reaction. Its good for the market long term though. This is going to get talked about for years.

 

[sns23]



Judging by this result so far, Zuck fucked everyone good.
Was never a fair valuation. He took advantage of the hype and got an insane price. To be honest, I didnt expect this bad a reaction. Its good for the market long term though. This is going to get talked about for years.

He sure did. He got tons of money for the company. I never understood the triple digit valuation. Maybe 50b, but not over 100.

 

[idfnl]



He sure did. He got tons of money for the company. I never understood the triple digit valuation. Maybe 50b, but not over 100.

Personally, I think its worth more like 25 or 30. That would be a $12 share price. Thats fair. We'll see if it hits it. I just wanted to trade the hype and hardly made ****.

 

[phreak]

Why do you care about 'fundamentals'? It's the stock market ffs

 

[stevent]



The goal is to get as much money for the company as possible. Anything more than a single digit pop demonstrates that the shares were undervalued.

+1

Judging by this result so far, Zuck fucked everyone good.
Was never a fair valuation. He took advantage of the hype and got an insane price. To be honest, I didnt expect this bad a reaction. Its good for the market long term though. This is going to get talked about for years.

Yeah, Zuckerberg did well in this case, either way he maxed out the money FB would receive compared to the bankers

 

[SkinnyGoomba]

Forgive my IPO ignorance, but IMO a high price is bad in some cases, they ill have trouble selling all of the Issued shares if there is not enough demand.

 

[Canal Directo]

It depends on what kind of offering they were doing. If it was an underwritten (or firm commitment) offering, then I believe that the underwriter does guaranty the sale of the issue at the offering price. If there is not enough demand and the issue is undersubscribed, they have to buy whatever shares they cannot sale at the offering price.

This is general theory, of course I do not know the specifics of this IPO.

FWIW I think that facebook played this IPO perfectly since they got the maximum amount of cash they could get out of it. And if I had a substantial amount of FB shares, I would have sold at the very least 50% if not 75% of them, there is no ******* way facebook is currently worth such a valuation.