Skip to comments.Jim Cramer Many people do not even have their orders filled..$FB a giant fiasco and a hidden one..
Posted on 05/19/2012 8:03:59 PM PDT by SMGFan
Jim Cramer Tweeting and requesting tweets about possible problem with NASDAQ Facebbok
(Excerpt) Read more at twitter.com ...
no this isn’t the case. Nasdaq had huge problems, adn there are hundreds of thousands of orders that were never given a report NOR an out. This is a huge problem for the market, and they have to have an answer by late tomorrow to let folks square their books for monday open.
the 38 support was syndicate bid, the underwriters supporting the stock, which they do for the first 30 days of trading iirc. It is legal manipulation, and very up-front.
No-one is Washington has the guts to return the stock market to it’s intended purpose, raising capital for businesses. Short selling, derivatives so complex even the buyers and sellers have no idea of their potential loss. It has indeed become a casino where is all about hedges, trading risk and paying huge compensation for people merely transferring assets from one person to another.
Banks have absolutely no place in these risk management assets and they line so many political pockets it will never go back to the way it was - investment dealers handle investments and banks manage capital.
The Occupy Wall street whackos at least have an essential aspect of their platform correct. Wall Street is corrupt, unregulated and is the antithesis of free market capitalism. It truly is crony capitalism. Look at the Facebook fiasco. Only insiders were offered shares through the IPO for $38 a share. They were hoping to unload it on the suckers who bought all the hype and spent Friday paying the over $ 40. Now the insiders are crying cause they couldn’t fleece the small guy for at least $ 50 a share. Over 500 million shares traded, they got rid of most of it at a profit, in fact the firms that promised the insiders a big fat killing were buying shares to keep the bid above $ 38 most of the afternoon. I wish no-one wanted it and it opened at $ 37. But people were so eager to hand over all that profit to the insiders, they had to delay the opening to get all buy orders in place and set an opening price. The kind of pump and dump you expect from boiler room vermin, played out for the whole world to see.
It’s an embarrassment.
Gonna hafta let Bernie out so he can fix it.
I don’t have to understand any business that sets an IPO price at an unheard of 100 X earnings. Time will tell, but right now Facebook is probably one of the most overpriced IPO in the modern era. If it had been priced at 20 - 30 X earnings that would have been high, but reasonable.
From a purely valuation standpoint, the money they are making now can not justify it’s price. For anyone who bought it at somewhere between $39 - $42 on Friday, maybe if they hold it for 2 or three years they make something. Of course they could get lucky, if there is a huge short position the insiders could start buying and selling amongst themselves, drive the price up in a short squeeze.
Facebook does have integration with content and sub-networking providers like monster.com the job board. Those applications still seem to be cutting their teeth, from my experience with them. I’m using a new Firefox with an old Windows, and when it says it’s pasting my resume experience to my timeline it actually pastes multiple copies of the same recent job at the time I took that job. Pfooey on that! And there’s no way to beg support that I can see.
I heard from one of the stock trading talking heads that a number of investors were shorting the stock on the day of the IPO. I think if I was to put money into its stock I would short it myself.
I tend to believe that the FB shares will drop down between $20 and $25 per share (maybe even less) because there is some value there to the service they provide to the public.
Oh, and some of the providers working with Facebook are probably ad supported themselves. For example there’s the mancave, which markets stuff for man caves (hard core sports, beer, video, etc. dens) and there’s a kitty service that posts a new cat picture on your behalf daily, and there’s a birthday card service that sends cards to your birthday friends (but they can’t read the cards unless they too sign up for it, boo hiss).
Double-oh... when I listed my political preference I put “knuckle dragging conservative.” Voila, Facebook creates a group page for “Knuckle Dragging Conservative”! (But I’m the only member.) You folks won’t be able to see me because I restricted it to friends.
fb is basically a data-form website; users type data into fields and save, fb saves the data for later presentation. It’s a big database of data that users entered.
Most decent programmers can design system that displays a form on the screen and allows the user to edit it.
Google, on the other hand, is at it’s core a proprietary search algorithm.
A very small percentage of programmers would be able to make a site like google and make it work that well. Remember, they’re essentially cataloging every page on the internet and allowing every internet user in the world to then do full text searches on the pages; and the system returns results lickity split.
To test it, simply wait a day or two after you enter a post on FR. Then, using google advanced search, enter the site name criteria freerepublic.com, then search for about 5 or 6 fairly distinct words from your post in the field..
this exact word or phrase:
You’ll find the page your post is on in the top few search results. If you think that’s easy to write, all I can say is try it.
fb average annual revenue per user is about $4, about half what Yahoo’s is and about 15% of what google’s is.
Average Annual Revenue per user is basically the key question: can you ring up sales based on all the users on your site.
Half or more fb users are in countries other than the U.S., which makes finding revenue much more difficult. fb is very popular, for example, in New Zealand. How does one monetize that ?
fb acknowledges that a) they need to invent a whole new monetization scheme and b) they don’t have it invented at this point.
While all IPO’s are in essence a pump and dump, this one is certainly the grandest one to date.
The abridged version; nothing but a scheme to seperate one from their $.
It is priced @ p/e 90+, sans dividend, just saying. But it got notoriety, so that must be worth something, right?
With ads for things that sell in New Zealand? I'm missing the point I guess.
Wow! To read these comments about Cramer is hilarious! He is a TV personality! Do you really think that he is worried about the common man’s investment?
Maybe it’s time to take stock of your own decisions. How about taking the time to understand your investments, where and why!
Folks, the stock investment area is a gamble for everybody. The folks that have the advantage are those that get the information first and react fast. Us, we are the last to know and only provide the money to enrich those that are in the know.
Go safe or get out!
The intelligent investors have likely already sold their Facebook stock.
I know I would have.
FB and Twitter are starting to be used as login entry points to many 3rd party websites and it looks they’ll penetrate further into that market. There are a lot of micro fees that FB is going to be looking to collect on in the future.
you’re exactly right....the stock market is so rigged and its not about owning “part” of a company; its about jumping in on a bait and switch con game....if you can get in and out, which an individual can not do, you might get ahead....
How many Marmite ads can you sell though?