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Thread: Facebook IPO, or, greed is good.

  1. #1
    Senior Member Yelta's Avatar
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    Facebook IPO, or, greed is good.

    Gene Cafe Coffee Roaster $850 - Free Beans Free Freight
    Look at all the happy creatures dancing on the lawn (thanks Creedence)
    http://www.smh.com.au/business/world-business/overhyped-facebook-shares-stumble-on-debut-20120519-1ywx5.html I predict that a lot of this euphoria will turn to tears in the not too distant future, of course the person with the biggest smile is Mark Zuckerberg, a $20 billion smile in fact, I bet he has the brains to move the biggest part of his holdings out of the tech area ;)
    People either have short memories or were too young to remember the Tech Wreck that took place between 1995 and 2000 http://en.wikipedia.org/wiki/Dot-com_bubble in this case I suspect history may well repeat. ::)

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    Re: Facebook IPO, or, greed is good.

    Mark Zuckerberg may have a smile now but he will have to spend the rest of his life preventing all the crooks in the universe from pinching his 20 billion.

    I wonder what coffee machine he uses?

    Barry.

  3. #3
    Senior Member Yelta's Avatar
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    Re: Facebook IPO, or, greed is good.

    Quote Originally Posted by 456675757E58437269646669070 link=1337397419/1#1 date=1337406653
    Mark Zuckerberg may have a smile now but he will have to spend the rest of his life preventing all the crooks in the universe from pinching his 20 billion.
    Would certainly be a nice problem to be faced with. :)

  4. #4
    Senior Member Yelta's Avatar
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    Re: Facebook IPO, or, greed is good.

    Mark Zuckerberg sold his shares in Face Book and made a cool 1.13 billion ::) Certainly didnt have to be a fortune teller to see this one coming.
    http://www.adelaidenow.com.au/facebook-gurus-cash-out-before-plunge/story-e6frea6u-1226366171915

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    Re: Facebook IPO, or, greed is good.

    Nasty capital gains tax hit though....

    Still, it would be a problem worth having.

    How much is enough when it come to money like this? Im continually convinced that the goal for people who are mega rich isnt having money, its the act of making money.

  6. #6
    Senior Member Yelta's Avatar
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    Re: Facebook IPO, or, greed is good.

    Quote Originally Posted by 49464A5C4E49492B0 link=1337397419/4#4 date=1337906369
    Nasty capital gains tax hit though
    In the US short-term capital gains are taxed at the investors ordinary income tax rate.

  7. #7
    Senior Member Yelta's Avatar
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    Re: Facebook IPO, or, greed is good.

    (Sorry Facebook investors: its your fault)
    Read more here.
    http://www.smh.com.au/business/motley-fool/sorry-facebook-investors-its-your-fault-20120525-1z9na.html

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    Re: Facebook IPO, or, greed is good.

    I find it totally amusing that the money lost on the first day of Facebook Shares trading was substantially more then what it took for the private company SpaceX to get to the point of launching a person into orbit.

    but then, I knew at the time that facebook was overvalued.

  9. #9
    Senior Member Barry O'Speedwagon's Avatar
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    Re: Facebook IPO, or, greed is good.

    Im no defender of Facebook (dont like the thing), Zuckerberg, or investment banking firms......but I would point out 2 things:

    1) on average IPOs are underpriced by about 16%, but in cases where they initially trade above offer, retail investors tend to get a low allocation
    2) there was a minor shock to global equity markets (our Greek friends again) between the time of setting the offer price and the listing date.


    Doesnt excuse the apparent selective disclosure of the affiliated analysts (which if true is unambiguously against RegFD and the Global Settlement these clowns signed). So if true I hope they get taken to the wall.

    Cheers
    BOSW

  10. #10
    Senior Member brettreaby's Avatar
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    Re: Facebook IPO, or, greed is good.

    really?* seems to me most IPO are cons and i wouldnt have a bar of them

    typically they project ridiculous earnings growth they never achieve.

    Facebook are quoting 25% compound growth for 10 years!

    Quote Originally Posted by 2D2B37292C332F2E400 link=1337397419/8#8 date=1337982813

    1) on average IPOs are underpriced by about 16%, but in cases where they initially trade above offer, retail investors tend to get a low allocation

  11. #11
    Senior Member Barry O'Speedwagon's Avatar
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    Re: Facebook IPO, or, greed is good.

    Quote Originally Posted by 6E4357454A4B4C45635664435647220 link=1337397419/7#7 date=1337964386
    I find it totally amusing that the money lost on the first day of Facebook Shares trading was substantially more then what it took for the private company SpaceX to get to the point of launching a person into orbit.

    but then, I knew at the time that facebook was overvalued.
    Fair enough but
    a) that amount of money was not lost ( would need to know volume transacted at each price). Sure, the market valuation of the firm fell by that amount, but if it goes up by $10 billion next week, would we say that they that they have made $10 billion. The SpaceX thing is cold hard cash that has been paid, which is a quite different to tracking the daily fluctuations in secondary markets.
    and b) if one knew this before the end of the subscription period, why not take a position against Facebook and make any amount of money you like? Not having a go, but its a lot easier to know stuff after the realisation of the event. Ill admit, I suspected the same as you....but I didnt know it.
    Cheers
    BOSW.

  12. #12
    Senior Member Yelta's Avatar
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    Re: Facebook IPO, or, greed is good.

    Your missing the point of my original post here guys, it was a comment on the gullibility/greed of inexperienced investors, not on IPOs, PERs, div yield or, heaven forbid, net tangible assets (how would you assess NTA for Facebook? ::) )
    The whole sorry saga certainly has all the characteristics of the tech wreck, people have short memories. :o

  13. #13
    Senior Member Barry O'Speedwagon's Avatar
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    Re: Facebook IPO, or, greed is good.

    Quote Originally Posted by 69555C4451300 link=1337397419/11#11 date=1338002220
    Your missing the point of my original post here guys, it was a comment on the gullibility/greed of inexperienced investors, not on IPOs, PERs, div yield or, heaven forbid, net tangible assets (how would you assess NTA for Facebook? ::) )
    The whole sorry saga certainly has all the characteristics of the tech wreck, people have short memories. :o
    Hi Jon,

    Sure. I would point out, however, that there are some salient differences between the Facebook case and many of the firms/stocks that tanked in the late 90s. Facebook has realised positive profits of a fair magnitude (though a fair bit of growth has been optimistically priced in), and a dominant market position. It is not only the inexperienced investors who jumped in. And i agree, Zuckerberg would be a goose if he didnt invest his share of the proceed in an unrelated sector.
    Cheers
    BOSW

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    Senior Member Yelta's Avatar
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    Re: Facebook IPO, or, greed is good.

    Quote Originally Posted by 3F39253B3E213D3C520 link=1337397419/12#12 date=1338004479
    Sure. I would point out, however, that there are some salient differences between the Facebook case and many of the firms/stocks that tanked in the late 90s.
    GDay Barry,
    Not trying to be a smart arse but one of the catch crys of the younger or inexperienced investors in the stock market is, its different this time. :)

    “It’s different this time,” is a phrase heard all too often in the stock market.
    You may hear it associated with a bull or bear market. You could hear it used to describe the new darling stock of Wall Street or a new investment strategy guaranteed never to fail.

    Whenever you hear it, you are wise to ignore it.

    The phrase is almost always used to describe a phenomenon that defies conventional investing or market wisdom.
    Remember how the tech boom of the late 1990s was “different this time?”
    Earnings didn’t matter. Balance sheets didn’t matter. Sometimes even products didn’t matter. This was the new age – the new economy."

    http://stocks.about.com/od/advancedtrading/a/102807different.htm

  15. #15
    Senior Member Barry O'Speedwagon's Avatar
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    Re: Facebook IPO, or, greed is good.

    Quote Originally Posted by 6E525B4356370 link=1337397419/13#13 date=1338006049
    Quote Originally Posted by 3F39253B3E213D3C520 link=1337397419/12#12 date=1338004479
    Sure. I would point out, however, that there are some salient differences between the Facebook case and many of the firms/stocks that tanked in the late 90s.
    GDay Barry,
    Not trying to be a smart arse but one of the catch crys of the younger or inexperienced investors in the stock market is, its different this time. :)

    “It’s different this time,” is a phrase heard all too often in the stock market.
    You may hear it associated with a bull or bear market. You could hear it used to describe the new darling stock of Wall Street or a new investment strategy guaranteed never to fail.

    Whenever you hear it, you are wise to ignore it.

    The phrase is almost always used to describe a phenomenon that defies conventional investing or market wisdom.
    Remember how the tech boom of the late 1990s was “different this time?”
    Earnings didn’t matter. Balance sheets didn’t matter. Sometimes even products didn’t matter. This was the new age – the new economy."

    http://stocks.about.com/od/advancedtrading/a/102807different.htm
    Hi Jon. You make a fair point. . All Id say is, that sometimes circumstances actually are different. Facebook probably is over-valued, but unlike the stocks of the 90s, it is still worth quite a bit based on traditional fundamentals. There is no suggestion here of earnings not mattering, nor balance sheets not mattering. Often people do make claims that it is different this time and come out with egg on their face. Every now and then they are right (or at least lucky).
    Cheers
    BOSW.

  16. #16
    Senior Member Yelta's Avatar
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    Re: Facebook IPO, or, greed is good.

    Quote Originally Posted by 32342836332C30315F0 link=1337397419/14#14 date=1338007732
    All Id say is, that sometimes circumstances actually are different.
    I agree, FB is a different kettle of fish to the dot com IPOs, regardless I doubt there was much smart money gambled on the offer, bet the sharks are circling now though. :)



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