Talking stocks, trading, and investing in general

[Infrasonic]

http://www.google.co.uk/finance?q=facebook

Going lower. Be interesting to see what happens when you can short it...

 

[calisanfran]



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.

Can't blame Zuck really. I think big part of the blame lies with the secondary markets (SharesPost, etc) where FB shares were being traded on complete hype with no real disclosure obligations on part of the company, etc. IIRC, the private market valuation of FB close at $44 per share. There is no way MS would have gotten to be the lead underwriter if they didn't pitch to FB management that they could help the contain attain a $100bn valuation on IPO (i.e. in range of what the private markets were suggesting).

 

[Infrasonic]

http://www.businessinsider.com/excl...y-of-what-happened-on-the-facebook-ipo-2012-5

 

[imatlas]



http://www.businessinsider.com/excl...y-of-what-happened-on-the-facebook-ipo-2012-5

And the criminal investigation is launched:

Massachusetts' top securities regulator has subpoenaed Morgan Stanley related to allegations that it gave some clients negative information about Facebook before last week's initial public offering.

In a statement Tuesday, Secretary of the Commonwealth William Galvin said his office is investigating whether Morgan Stanley selectively divulged to some clients that its analyst had cut his revenue estimate for Facebook. Morgan Stanley was the lead underwriter for Facebook's IPO.

The analyst's revision followed an amended filing by Facebook in which the company said a shift by many Facebook users toward mobile devices might limit its revenue growth.

Facebook's stock slid further Tuesday on its third trading day, dropping 9 percent to $31. The social networking company has fizzled since its long-awaited public offering last week at $38.

Rick Ketchum, head of the Financial Industry Regulatory Authority, said that if the allegations against Morgan Stanley are true, it would be "a matter of regulatory concern" to FINRA and the Securities and Exchange Commission.

FINRA is the securities industry's self-policing organization.

If Morgan Stanley gave revised information on Facebook to favored clients, it would mean retail customers and others weren't able to benefit from the same information before Facebook went public.

SEC spokesman John Nester declined to comment.

 

[idfnl]

Compared to '08? This is stealing water from a river.

What we didn't know was why.

Now we know.

The analysts cut their estimates because a Facebook executive told them to, a source tells us.

The information about the estimate cut was then verbally conveyed to sophisticated institutional investors who were considering buying Facebook stock, but not to smaller investors.

The estimate cut appears to have influenced the investment decisions of at least some institutional investors, dampening their appetite for Facebook stock, and crucially affecting the price at which they were willing to buy Facebook stock.

Read more: http://www.businessinsider.com/excl...ened-on-the-facebook-ipo-2012-5#ixzz1veIVSZQR

 

[cross22]



Compared to '08? This is stealing water from a river.

I don't get it, an executive "told them" to cut their estimates? How would that benefit the company (maybe if the company buys back shares at lower prices)? This **** can land some people in jail.

 

[Dbear]

I think the Executive told them that more users are moving to mobile (where they aren't making any money) and that Q2 will not be good., causing them to reduce their estimates.

 

[cross22]

Yes, but they only told large institutional investors and still ended up pricing the IPO at the high end. I have no idea about regulations around IPO pricing but that doesn't sound right.

 

[idfnl]



I don't get it, an executive "told them" to cut their estimates? How would that benefit the company (maybe if the company buys back shares at lower prices)? This **** can land some people in jail.

No it wont. They were trying to get Madoff looked at for 10 years. Nobody is minding the store.

 

[SkinnyGoomba]

This is $38 worth of entertainment, but I dont want any shares in return.

 

[SkinnyGoomba]

Ugly day on the Dow!

 

[javyn]

Glu popped 8% in this bloodbath, nice.

So...any believers left in ACTC? Are we still doing a r/s?

 

[Dbear]

things seemed to have reversed up right before the close. surprised FB is up, who is buying right now.

GLUU popped b/c it was mentioned on some show (again). seems to pop everytime that happens. But it can lose it all in a day or two, easily.

 

[javyn]

Ahh, I see. We can add CNBC to the list of pumpers then. Along with Seeking Alpha heh. Just read a little bit, apparently the show that pumped us had some investment guy Niles talking about it, and he's supposedly some big deal.

 

[crispeta]



surprised FB is up, who is buying right now.

Let's assume this highly likable Mrs Sandberg runs for presidency in 4 years and she allocates 90% of her campaign budget to FB (if it'll still be around by then), where would you see the price? I mean, given these hypotheses - hell yeah, FB=strong buy!


NFLX is +6ish% as well, again.. and AAPL gaining, again..