Ok, so I expected something like this to hit the net but definitely not this soon.
Do you think this will develop into something more serious? I don't know why, but I got a feeling that an email will pop out in the net in which the underwriters knowingly misled the investors.
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everyone was talking about how it was overpriced, it wasn't that big of a secret. MS still managed to pull it off though and raised the maximum amount of capital for their client, which was their main goal anyways. They may have spurned investors and insiders in the short term, but it sounds like the smart ones got out on Friday.
I'm waiting for $20, then going in
As far as I'm concerned as long as what you're presenting is factual, you aren't misleading. Like if FB fucked with their financials to increase their valuation that's one thing, but as long as you're presenting the right numbers you aren't doing anything wrong imo. Pre-ipo, I dont recall one thread on WSO that ppl didnt agree that it was overvalued. The fact that it sold means that there were ppl that disagreed with that. They were entitled to their opinion and now they're paying for it. Markets speak with their actions.....no one was forced to buy in
Agree 100% here....so question now is...where is the bottom? $15? $20? $30? I say $22 once 2nd quarter earnings come out and disappoint.
You're in good company. Blodget is calling for a fair valuation at $22 as well. It'll be interesting to see.
How does this story suggest fraud at all? It's very clear that a memo with the reforecast went out to all interested buyers. Everyone who bought the offering at $38 knew about this, and they could have changed their order size or dropped out entirely. Retail investors didn't have access to the original IPO roadshow materials, let alone the revised numbers, so I don't see how people who bought on Friday could claim they were misled. BI is really awful.
still, i think that this is not the end of it... i bet there will some sort of internal memo stating that someone knew that it is overvalued for x and y reasons and people will start blaming bankers for it
Yes, clearly going below $30. Not sure where it's going to stop. Do not have a position and don't plan to participate at all except to heckle the retards who bought in.
And so it begins:
Massachusetts subpoenas Morgan Stanley for Facebook
This annoys me...there's been a lot of headlines like: where was the FB IPO pop? Investors got "Zuckered"! FB IPO will tarnish JPM further! And the like. I wish people weren't so dumb. Like OP said, MS's goal is to raise money for FB, and by the look of it, they did pretty damn well at their job. I hate when people feel that if they bought FB, they're entitled to a price pop. People just need to come to the realization that they're dumb and got sucked into the hype. Any intelligent investor knows when your nanny (or insert low wage job here) starts talking about getting into a stock, it's too late and you better short it!
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