FB is a fad, and I am tempted to short a stock for the 1st time.
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.
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.
It was beyond obvious:
“Facebook’s underwriters had to step in to support the company’s share price, people familiar with the matter said. In particular, lead underwriter Morgan Stanley MS -0.82% was assigned to be the deal’s “stabilization agent”—meaning it was the firm’s job to keep the shares above the offering price, these people said. In that role, Morgan Stanley was forced to buy Facebook shares as the price slid toward $38 in order to prevent the price from crossing into negative territory, according to these people.”
My Dad used to “play” the market quite a bit. But then he noticed that the “market maker” was playing around with some of the stocks he was acquiring. To say he was “ticked off” is putting it mildly. He closed out most of his positions and is now invested in just two and is holding them for now.
In any case he is totally convinced that the market now is completely manipulated and that most people should just stay out.