by Jack
There’s a lot of talk on the street that this whole stock offering thing was just a way to raise capitol so many of the people behind Face Book could cash out…and leave investors holding a dog. It wouldn’t be the first time, if this is true.
We know there is nothing special about Face Book’s technology, it’s pretty generic, which means an entrepreneur with software skills could create a competing website with better features fairly easy. What happens then? Face Book’s valuation is built on its ability to churn out profits like eBay and investors are desperately hoping it will. But, eBay is a whole other concept and they are now so large they can fend off the competition – can Face Book say that?
I understand that a class action lawsuit has been filed on behalf of investors who have been fleeced in the market sell off of this stock. The current value is now $30 and change and it looks like its headed south for awhile longer. The IPO price was ridiculously overpriced, so its no wonder the stock has dropped. But, is there something shifty going on behind the scenes? Many think so. That has to have stockholders more than a little skittish.
Of course it’s true. Facebook has been luring and “compensating” top talent with stock options for ages, and the SEC has been leaning on the Z to pony up … go public … allowing the talent to cash out, and the suckers to go begging.
But this is all according to the rules, there’s no fraud in it, which is why the rules want a lot of work … that neither Obama nor Romney will do.
Put it in the mattress, people. Bury it in the yard.
An awful lot of investment people thought the opening price was too high but how would you prove fraud when they were basically evaluating and pricing nothing. It exists because people participate but they haven’t really figured out how to make money. Sophisticated investors knew this but the little guys that just wanted a small share might not have. it was a gamble that might or might not pay off in the end.
Seems more like pig in a poke to me.
This morning it has been suggested that the rules of the game were changed in the final hours and not revealed to everyone…a big no no. Jack, you may be right but whether the guilty will pay is uncertain. Depends on how much of this turns out to be political. (It’s not nice to withold campaign cash from the O man but if you do, you’re covered)
So Zukerberg lost $5 billion on paper on the first day. Big deal. He lost half his entire fortune on the second day. He got married.
In the immortal words of Nelson Muntz… ha-ha
Zuckerberg sold a billion dollars worth of stock on the first day of trading…he’s not that stupid.
If you were dumb enough to invest in FB for the long haul with big money, you deserve what you got. I knew the second Obama Motors pulled its ad dollars but the “value” of the IPO was not lowered, the fix was in. As it turns out some investors were informed that it was $hit so they cashed out. Jack did they tell you? I bet they didn’t but you were smart enough to cash out fast and put some coin in your pocket (good job). This is just another political con job.