Facebook IPO

[Valuist]

The company is talking about an IPO soon. Judging from the performance of Linked In and Groupon, now would be a bad time for an IPO. They claim they are worth $100 billion market cap yet won't open their books.

If you can get in on the IPO, do it. Then sell as soon as it hits the open market. As big as it is now, we don't know if they will be big or even around 7-8 years from now. Google may come up with a competitor. Remember how My Space was popular 5 years ago? Where is it now?

[PaceAdvantage]

If you get in on an IPO, depending on the brokerage firm, there can be consequences if you try and sell your shares as soon as you make a quick buck.

[BetHorses!]

Originally Posted by Valuist

The company is talking about an IPO soon. Judging from the performance of Linked In and Groupon, now would be a bad time for an IPO. They claim they are worth $100 billion market cap yet won't open their books.

If you can get in on the IPO, do it. Then sell as soon as it hits the open market. As big as it is now, we don't know if they will be big or even around 7-8 years from now. Google may come up with a competitor. Remember how My Space was popular 5 years ago? Where is it now?

What about the investment fund GSV capital (GSVC) who acquired 300k shares of FB?

[Valuist]

Originally Posted by BetHorses!

What about the investment fund GSV capital (GSVC) who acquired 300k shares of FB?

What about them?

[BetHorses!]

Originally Posted by Valuist

What about them?

I think its a decent way to play the IPO for those who cannot get in. Do you agree?

[Valuist]

Originally Posted by BetHorses!

I think its a decent way to play the IPO for those who cannot get in. Do you agree?

Yeah probably. I was not aware of that. Actually it might be a better way. I think of how much money Goldman has made over the years on IPOS; a lot on companies who no longer exist.

[BetHorses!]

Originally Posted by Valuist

Yeah probably. I was not aware of that. Actually it might be a better way. I think of how much money Goldman has made over the years on IPOS; a lot on companies who no longer exist.

Im in at 14 since the summer. Made a run up to 19.97 and back down 12ish. Currently at 14.40. Prob buying some more

[BetHorses!]

Originally Posted by BetHorses!

What about the investment fund GSV capital (GSVC) who acquired 300k shares of FB?

GSV Capital Corp (GSVC) -NasdaqCM
20.45 1.94(10.48%)


Val....did you buy?

[lamboguy]

Originally Posted by PaceAdvantage

If you get in on an IPO, depending on the brokerage firm, there can be consequences if you try and sell your shares as soon as you make a quick buck.

there are brokerages that will stop giving you new issues if you sell them right away.

i used to get secondary issues from full service brokers and they would not let you short them the night before they got issued. i had to use a different account to short them. the brokerage firm that gives you the new issues don't charge a commision to buy them, but when you sell them you get charged a FULL comm. 1000 shares might be over $600 for the transaction.

if its a hot issue like facebook, very few people will get more than 200 shares.

back in the 80's and 90's i dealt with a firm called HAMBRECHT AND QUIST. they brought most of the hot company's public. i made a deal with them that i got every new issue, the good with the bad and the same amount of shares. i agreed to pay full commision, and i made money. then the company got taken over and i was out of business with them.

the best new issues that i used to buy were mutual savings banks and mutuel life insurance company's. you had to have bank accounts in the banks before they went public, and life insurance policy's to get the new issues. with the mutual banks you could buy up to 30,000 shares at $10. they were all the same deals. some went up $1.00 per share opening day, and others went up as much as $8. the best part of those deals were you could sell them in a discount broker and not have to pay stupid fees.

[BlueShoe]

One thing for sure, the promoters of this issue are going to make a great deal of money, but everyone else? Who buys Facebook? Millions of unsophisticated younger FB addicts that want a piece of "their" company? Pump and dump after the opening by the sharpies? Hard to figure this one, but my instincts say stay far away. Interesting to see how much institutional buying takes place. Will a few mutual funds get in early? Just seems to be way too much hype, everyone on the planet knows about Facebook and this IPO.

[Valuist]

Overhype + no earnings = replay of tech bubble of 2000-2001. Yeah it probably pops today but one would have to be crazy to buy in once it hits the market.

[DJofSD]

Originally Posted by Valuist

Overhype + no earnings = replay of tech bubble of 2000-2001. Yeah it probably pops today but one would have to be crazy to buy in once it hits the market.

Ditto. And, double ditto.

The only good thing about the FB IPO is it has gotten the FM crowd off of AAPL for a while.

Color me sick-and-tired-of-face-book-hoodies-and-all-of-the-hype.

[JustRalph]

Facebook has shot itself in the foot before.

I don't play the stock game, but If I did.........this wouldn't be someplace I would put money in.

[DJofSD]

We'll all learn a bit more in ten days when futures trading for the issue is started.

[DJofSD]

http://finance.yahoo.com/news/shorti...143541954.html

"This is about as bubbly as you can get," he said. "My mother asked me if she could get Facebook shares and she has never been interested in IPOs before. A cab driver asked me about the IPO too. That's when you want to short it."