Facebook worth $104BN?

Wookster

Generali wrote: »

I told you this was a screaming short though.

Yup I thought so too, but I thought there would be a bounce after the float. Instead it was more of a damp squib!

mr_fishbulb

PaulF81 wrote: »

UNfortunately gen, as I understand it. The share isnt shortable at the mo.

Does that apply to spread betting?

Generali

PaulF81 wrote: »

UNfortunately gen, as I understand it. The share isnt shortable at the mo.

The Wall St Journal seems to think otherwise:

http://online.wsj.com/article/BT-CO-20120522-710610.html

--Facebook shares trip short selling breaker on Monday, triggering limits through Tuesday.
--Thirty million Facebook shares were sold short in first two days of trading, Finra data show.
--Shares remain hard to borrow as the stock filters into lending programs.

I can see how you could restrict the market makers from shorting but not everybody else. If you can borrow the stock you can short it.

stonethrower

A crazy flotation price, they have 900 million users and floated for 104 billion that means on average each user is worth over 100 dollars to them. I can't see it myself.

Generali

PaulF81 wrote: »

UNfortunately gen, as I understand it. The share isnt shortable at the mo.

Put options don't list until 29th I think. Perhaps that's what you're thinking of...?

Joe_Bloggs

I was a Zucker sucker is a phrase that should be on some 'T' shirts. I am creating my own 'T' shirt design using the fluid contained within 'liquitabs'.

J_B.(I dropped the berg bit to protect the innocent and preserve word peace.)

worldtraveller

worldtraveller wrote: »

It appears that this material information was allegedly only passed on to selective institutional clients. This could be a problem due to laws regarding selective dissemination.

Facebook and its founder Mark Zuckerberg are being sued by disgruntled investors following the firm's $16 billion flotation last week.

The defendants, who also include bank and lead IPO underwriter Morgan Stanley, are accused of failing to disclose "a severe and pronounced reduction" in revenue growth forecasts in the build up to the record public offering.

The complainants allege that Facebook revenues were revised down because of a surge in the number people using mobile devices for apps and connection to its site.

The class-action lawsuit was filed in U.S. District Court in Manhattan on Wednesday, a day after a similar one was filed in California.

ITN

Pretty much predictable, I guess. This time though it'll be the lawyers, not the underwriters, getting fat on their fees! :whistle:

Masomnia

The plot has definitely thickened. I couldn't help but laugh, the information we had showed its value was fantastical, never mind what was hidden. Surely this is just people saving face?!

gallygirl

worldtraveller wrote: »

The complainants allege that Facebook revenues were revised down because of a surge in the number people using mobile devices for apps and connection to its site.

Considering this was discussed on the BBC2 programme last week it was hardly withheld info. I don't think there's much difference between how overpriced it was with/without this info. If it was 11 times overpriced originally (picking a rough estimate of $10 per user value rather than the $115 it works out at) and is now 15 times overpriced it still means it was ridiculously overpriced to start with.

worldtraveller

Down nearly 9% currently on Fridays close, around 23% below IPO price.