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Serpentor
2012 Sep 2, 2:50am
Come on man. People has ben talking shit about the housing market on this web site. I didnt see any rules about backing it up when the bulls called. I think we pretty much agree (except for Tina) the stock is going down for the rest of the year. Any predictions on specific numbers a specific time is pure speculation. Especially when a stock is owned by so many irrational kamakazi inverters like tina.
bmwman91
2012 Sep 2, 2:50am
E-Man, I have no argument with that position. Based on present earnings and what I consider likely/realistic growth, the stock price today is still too high. I have read a couple of editorial articles that say that Zuckerberg does not care about that since he still holds a very large majority of control over FB, and he is focused on the company's social mission rather than the business side. If that is the case, then the price definitely is too high right now, but investors should not be crying about it...it's sort of a "duh" thing if he has been openly stating this.
http://finance.yahoo.com/blogs/daily-ticker/becoming-clear-no-one-actually-read-facebook-ipo-160120121.html
In order to get in-line with the P/E ratio of the rest of NASDAQ, the FB stock price is looking at $5 per share (less when a large number of shares come on-market later this year). Will it actually go that low? I don't know, but for some reason I don't think so. I am sure that they are working on ways to cash in on mobile since that is where all of the users are going. I have no doubt that FB management is fully cognizant of this. If they are successful at that, their revenues will probably go up by a multiple or two. Time will tell though.
bmwman91
2012 Sep 2, 2:52am
Especially when a stock is owned by so many irrational kamakazi inverters like tina.
Bro, how can it NOT be a solid investment? I mean, even pets can have accounts! Purina pet chow ad revenue.....HELLOOOOOOO!
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I have enjoyed watching the whole FB thing unfold, partly schadenfreude, I guess, but it's also just interesting (the RedHat IPO was the last one I watched so closely)
Anyway, there has been a lot of talk about the lockup provisions expiring and the potential for the market to get flooded by people who hold stock that has been so far held off the market.
http://www.washingtonpost.com/business/technology/schedule-of-when-facebook-insiders-employees-can-sell-stock/2012/08/17/8a7718dc-e883-11e1-9739-eef99c5fb285_story.html
In summary:
Up to 1.91 billion more shares could flood the stock market — more than four times the 421 million shares that had been trading since Facebook’s initial public offering in May.
IPO: 421 million
Thursday: 271 million shares held by early investors and directors
Unspecified date between Oct. 15 and Nov. 13: 243 million shares and stock
Nov. 14: 1.22 billion shares and stock options, about a third of which is controlled by Zuckerberg.
Dec. 14: 149 million shares held by early investors and others who participated in IPO, except Zuckerberg.
May 18, 2013: 47 million shares held by early investors
That seems like a lot to me. Obviously it's unlikely that everyone is going to dump all of their holdings (particularly Zuckerberg), but this doesn't seem good for the stock price.
It will be interesting to watch.