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Facebook crashes below $30 in 'worst IPO in a decade' - Telegraph

So, the markets have realised what a pointless, time-wasting and pernicious pile of junk Facebook is! My faith is restored.

And then this ........

Facebook founder Mark Zuckerberg unable to withdraw cash on Italy honeymoon - Telegraph

con-pilot

Well I am shocked, no I'm appalled.

This sort of thing only happens when I buy an IPO stock. I didn't buy any F acebook stock, so I'm mystified about what happened.

Lonewolf_50

con, you read my mind. The world is becoming a very strange place ...

gingernut

I think that.....oop's sorry, I've got a notification

the kid's seem to understand it, must say, it's great for contacting Auntie Bettie in Arizona, and looking at Kelly (from reception), holiday photo's. I thought her bikini was a size too small.

Lyman

It is comforting to see some sanity return. The Facebook Capitalisation was refreshing, especially to see Morgan get snagged with pants down... I never understood the mob mentality in NY until I signed on with a casino corp. Greed makes everyone crazy for miles. I have never believed Facebook clients were solid enough to gel the model to attract ads, let alone investors.

The more it tanks, the more effective the catharsis. Sorry if anyone lost dough here, but only because I like you, not because you're smart.....

Lon More

Proven once again - you can't make a silk purse out of a sow's ear

I wouldn't give 3 (old)d. for the lot.

ExSp33db1rd

What's Facebook?

( Says one suffering from EGBF - Electronic Gadget Brain Failure )

Load Toad

'Like'.














...

Loose rivets

I wander in now that the Walton on the Naze forums have decided to use it. Within days, I had seen a professional, maybe BBC film, of my old school. My English/art teacher as clear as day. Also, another rusty old black and white film, flickery as hell, but it really displayed the post war era.

So, not all bad.

Oh, and if I want to know what the kids are up to, they seem to find time to go on there even if . . .

Solid Rust Twotter

Damned reality, always intruding where it's not wanted...

Flap 5

So the guy who became a billionaire by just messing about may not be as rich as we all thought when reality kicked in. Who would have thunk it eh?

Mind you being a multimillionaire is still not bad for a guy who lived the dream of so many small, and larger, boys and managed to make it succeed.

lomapaseo

But this is not about the guy who made billions, it's about the suckers who lost millions on a dream

RedhillPhil

Search Google for "South Sea Bubble".

Ancient Observer

I'm with con-pilot on this. I did not buy kidsbook stock. Normally stock goes down by huge amounts when I buy it. As I didn't buy it, why did it go down?

For a fee, I'm happy to tell folk what I am about to buy, so you can short it.

AlpineSkier

Can anyone tell me the real aim of an IPO ( especially if this is "recognised " by the finance industry ?

1) Is it to make max possible money for the owners and the company ( i.e. highest poss launch price )
2) Is it to establish the company at a price that allows new investors to make money in short/medium term ?

Storminnorm

I once bought shares in the Daily Mirror. They plumetted after the launch.
Then the owner died in odd circumstances and they rose again. I sold the
shares and just broke even.

bnt

Strictly speaking, the purpose of an IPO is to make a company tradeable publicly, in whole or in part. Your option (1) is a given - that's just Capitalism. The definition of "maximum" is "whatever the market will bear". The price of FB stock was increased several times in the days before the IPO, hitting the market at the top of the range they set ($38). And some people did buy that that price, and it went up to over $42. So they were right, the market did bear it ... temporarily.

As for your point (2) ... once Zuckerberg or any private seller got his $38 per share, what interest does he have in helping investors by "making a market"? They're not going to help him.

I mean - I'm no professional investor, but every basic metric was screaming "overpriced" by the start of the IPO. P/E of 80-100? (Insert swearing here.) This was no secret, so why did people buy? To make money off of each other. Everyone who rides a bubble thinks he can cash out at the top, and leave some other sucker without a chair when the music stops. Good luck with that ...

mixture

Not defending FB here, I think we all agree FB stock was just an artificial bubble waiting to burst

However, it pays not to over analyse .... back in November 2011, I bought into a stock with a P/E at the time of 124. The stock has doubled in value and P/E has reduced. Creamed off a bit of profit by selling 40 odd shares last week and netted £1,750.

Sir George Cayley

I've been burned by two institutions. The Stock Market and Turf Accountants. Now I can't remember which one stung me for what

Shares are for big boys- small investors are generally seen as cannon fodder who help fund the wheels and cogs of the system.

Watch the indices just before the sumer holidays. Up then down - profit taking for the yacht charter.

Actually it's not Zuckerman but the advisors and market makers who appear to work for you but actually work for the big players off whom they feed regularly.

I know because I helped float a company on the SE and saw at first hand who really won.

SGC

vulcanised

At least withe the former you (usually) get some of your money back.