Facebook IPO to raise 85 million shares

[Cebu_4_2]

So your 1000.00 investment instantly loses at least 25%... See how this works yet? You don't get any free shares here boys and girls.

Facebook to Increase IPO Deal Size by 25%: Source

By: Kate Kelly
Reporter


Facebook plans to increase the size of its IPO by 85 million shares, says someone familiar with the matter, a move that could value its upcoming offering at as much as $18.5 billion.

http://media.cnbc.com/i/CNBC/Sections/News_And_Analysis/__Story_Inserts/graphics/__COMPANY_IMAGES/F/FACEBOOK/facebook-folder-200.jpg
Scott Eells | Bloomberg | Getty Images
The social network’s 25% upsize plan will be filed with regulators at the U.S. Securities and Exchange Commission Wednesday morning, this person said.
Facebook’s expected move takes the size of its new issue from roughly 340 million shares to roughly 420 million, a change that, combined with the greenshoe – additional shares that could be sold by bankers in the aftermath of the IPO – could value the total deal at nearly $20 billion.
A final decision on Facebook’s IPO price, which is expected to be somewhere between $34 and $38 per share, will be made Thursday evening.
- By CNBC's Kate Kelly

[Silver Rocket Bitches!]

Imma laugh when it turns out to be a pump and dump stock.

[Spectrism]

This looks like a major disaster for investors. When they try to squeeze the blabbing fools who tell their life stories on Fakebook, people will drop off. So far, there is no earning design for the company. GM stopped putting ads there since it produced nothing.

[gunDriller]

Facebook will be one of the most profitable shorts in business history.

in 10 years, its fall will be a case study at many MBA programs.

Instagram showed clearly Facebook's vulnerability. that's why Facebook paid $1 Billion for Instagram, which had only 30 million users and no profits. Instagram allowed people to upload photos from their iPhone, with a few Photoshop tools thrown in.

[chad]

this stock will be groupon in less than a week.

[General of Darkness]

How much revenue does Facebook make by banners etc?

[chad]

from zh:

Last year Facebook had $3.8 billion in revenue, not profit, just revenue. We don’t know how profitable Facebook is because it’s a private company. Let’s say Facebook’s executive team is absolutely stellar and they have even better margins than Google with 27.5% (Google achieved 25.7% profit margin in 2011). That would mean they earned $1.045 billion in profit which would imply a P/E ratio of 95.7 and a return of only a little over 1% on your investment. That’s a pretty bad investment which does not even begin to keep pace with inflation.

[gunDriller]

http://messages.finance.yahoo.com/mb/FB

feel free to share on the Yahoo Finance message board for Facebook.

[General of Darkness]

from zh:

Last year Facebook had $3.8 billion in revenue, not profit, just revenue. We don’t know how profitable Facebook is because it’s a private company. Let’s say Facebook’s executive team is absolutely stellar and they have even better margins than Google with 27.5% (Google achieved 25.7% profit margin in 2011). That would mean they earned $1.045 billion in profit which would imply a P/E ratio of 95.7 and a return of only a little over 1% on your investment. That’s a pretty bad investment which does not even begin to keep pace with inflation.

Thanks Chad, I'm with everyone else, there are going to be a lot of pissed off investors.

[palani]

Just a tax on the poorly informed and greedy. Easy come. Easy go.

[osoab]

FaceBook Pulls Reverse BATS - Flash Smashes To €50,000/Share (http://www.zerohedge.com/news/facebook-pulls-reverse-bats-flash-smashes-%E2%82%AC50000share)

Submitted by Tyler Durden (http://www.zerohedge.com/users/tyler-durden) on 05/18/2012 - 09:49
http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2012/05/FB%20BATS_0_0.jpg (http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2012/05/FB%20BATS_0.jpg)

Sigh: FaceBook's market cap briefly passed $100 trillion. How long until a loaf of bread does the same thing?



http://www.zerohedge.com/sites/default/files/pictures/picture-5.jpg (http://www.zerohedge.com/users/tyler-durden)
Facebook European Premarket Bid - €58 (http://www.zerohedge.com/news/facebook-european-premarket-bid-%E2%82%AC58)

Submitted by Tyler Durden (http://www.zerohedge.com/users/tyler-durden) on 05/18/2012 - 09:30 If this screen from Bloomberg is correct, people are far dumber than even we thought, because this implies that FB will have an over $200 billion market cap at the open all else equal.

[Book]

At the $38-a-share IPO price, Facebook would trade at over 100 times historical earnings, versus Apple Inc's 14 times and Google Inc's 19 times.

https://freedpaly.files.wordpress.com/2011/10/occ4.jpg

::)

[Sparky]

this stock will be groupon in less than a week.

Though we can all agree that FB may/will ultimately be a bust, don't expect it to happen fast. This is going to be a trading stock for a while, regardless of what the hell their business plan is. It will could double it's initial $38 price intraday today, maybe even break $100. The swings should be breathtaking. Don't forget, there's a MASSIVE group of investors waiting for the initial euphoria to settle down so that they can invest billions of long-term dollars.

In order to estimate a crash date, we're going to have to see how long the lockout period is for insiders. Probably somewhere between 90 days and 6 months. The ultimate FB crash won't happen until after that. My guess is that it will accompany the general market crash coming in late 2013.

[Glass]

So it seems to me we are going to have another Dot com boom. This could be the path to recovery. I predict many more of these. All with dubious financial potential. Pump and dumped.

Do companies even pay dividends any more? Seems most people are going for "capital appreciation" these days. They obviously think there is no dilution in price for this extra 25%. interesting to see what they do once listed and the flippers start selling. Will retail soak that up with price momentum?

[Glass]

26 Minutes In And... Still Nothing (http://www.zerohedge.com/news/26-minutes-and-still-nothing)
Submitted by Tyler Durden (http://www.zerohedge.com/users/tyler-durden) on 05/18/2012 - 11:27 Market Conditions (http://www.zerohedge.com/category/tags/market-conditions) Yes, we are all waiting for what is increasingly becoming an epic disaster. In the meantime there is this:


TRADERS FOR FACEBOOK HAVING PROBLEMS CHANGING/CANCELING ORDERS:WSJ...

We believe CANCELING is the operative word. Of course, Europe is about to close which according to some may be the catalyst. In other news, nobody even dare think, let alone whipser "Market Conditions"


ZH link (http://www.zerohedge.com/news/26-minutes-and-still-nothing)


UPDATE: Algos defending $40.00 desparately! 115mm shares From the $38 IPO price, we open at $42.05 (now at $40.1) but we note that in Germany it has tumbled from well over EUR90 earlier. We get the sense the media is disappointed, but of course they will be talking longer-term now and defending a weaker-than-expected open: CNBC: "I just want to make sure we don't whip ourselves into a frenzy on the short term value." - perhaps a little late for that eh?


ZH link (http://www.zerohedge.com/news/fadebook-opens-trading-4205)

Maybe it's just going to crater.

[vacuum]

So 100 billion dollars divided by 800 million active users is about $125 per user. For the amount of personal info active users people input into the system, that may be a valid number.

[gunDriller]

definitely the biggest bubble i've ever seen.

this is what a bubble looks like. sort of useful, if/when gold or silver get to this point - then it might be time to sell.


facebookbubble.com

facebubble.com

stealthisfacebook.com

/\ all these domains are taken. i wonder if Facebook did any defensive domain registering.

[Sparky]

definitely the biggest bubble i've ever seen.

this is what a bubble looks like. sort of useful, if/when gold or silver get to this point - then it might be time to sell.


facebookbubble.com

facebubble.com

stealthisfacebook.com

/\ all these domains are taken. i wonder if Facebook did any defensive domain registering.

Gunny, it can't be a bubble until the price actually goes up first...

The price action today is actually fascinating in its implications. Reports are saying that there is huge "Retail" buying. (Translate: "sheeple") My guess is that all of the commercial players who locked in the IPO price of $38 (Goldman, Fidelity, JPM, etc.) are now locking in an initial easy profit by dumping their shares onto the retail buyers while they are plentiful.

If this is their game, and FB faces an early struggle, don't be surprised to see the commercials then come back in as buyers below the IPO price, then run it up to a big price, and then dump it back onto the retailers for the ultimate fail. That might take a year or so for the entire process, but I think it's a plausible scenario. It will be entertaining to watch from the sidelines.

[Spectrism]

Now at $40-42... bouncing around.

I say it goes to under $20 in less than 6 weeks.

[Sparky]

Now at $40-42... bouncing around.

I say it goes to under $20 in less than 6 weeks.
I'd take that bet.

[gunDriller]

Gunny, it can't be a bubble until the price actually goes up first...



what if it was grossly over-valued to begin with ?

i guess it depends on the definition of a bubble. it has all the hype of a bubble.

next time i get stock options in a publicly held company, i wouldn't mind if it had a valuation of 25 times revenues or 100 times profits.

[Spectrism]

I'd take that bet.

Ok... shall it be at the lofty amount of one federal reserve note?
Of course, there will be the added cost of a beer at the time of pay-up.

[Sparky]

Ok... shall it be at the lofty amount of one federal reserve note?
Of course, there will be the added cost of a beer at the time of pay-up.
I'm much more interested in the beer. Winner's choice of brand. Payable at any future GSUS meet-up; I'm going to want draft. ;)

[MNeagle]

U2's Bono to Become World's Richest Musician Today Due to Facebook (FB) (http://marketmontage.com/2012/05/18/u2s-bono-to-become-worlds-richest-musician-today-due-to-facebook-fb/)


I am obliged by the laws of financial blogging to do a post somehow relating to Facebook (FB), and since almost every angle on Earth has been examined on this company, I thought I'll do a fun one. According to this story (http://www.nme.com/news/u2/63849), Bono's PE firm – Elevation Partners owns 2.3% of the firm. I'm not sure what stake Bono has in Elevation Partners but the story assumes its 100%. If so, and the Facebook IPO does well today (cough), Bono apparently will pass Paul McCartney as the world's richest musician. So there you go, something maybe you have not read on another site re: "the IPO of the century!"

The U2 (http://www.nme.com/artists/u2) singer owns 2.3 per cent of the shares in Facebook through his private equity firm, Elevation Partners, which they bought for $90 million (£57 million) in 2009 and now stands to make a handsome return.
Given the social media company is currently valued at over $100billion (£63 billion), this makes Bono's share worth over $1.5 billion (£940 million) and puts him well above Paul McCartney, who is currently the world's richest rock star with a fortune of £665 million.
http://marketmontage.com/2012/05/18/u2s-bono-to-become-worlds-richest-musician-today-due-to-facebook-fb/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+marketmontage%2Fxyz+%28Market +Montage%29

[Spectrism]

I'm much more interested in the beer. Winner's choice of brand. Payable at any future GSUS meet-up; I'm going to want draft. ;)

I travel around MA all the time.... sounds like a bet. Now, just to be sure, I am claiming that the price of FB will drop under $20 some time in the next 6 weeks. I know that is a mighty stretch suggesting some reality in its value, but I like to go against the flow.


High of FB today was $45.... closed at approx $38.23. At this rate I just need 3 more trading days. :)

[osoab]

Mark Zuckerberg saved $111m by selling Facebook shares before stock slumped (http://www.independent.co.uk/news/business/news/mark-zuckerberg-saved-111m-by-selling-facebook-shares-before-stock-slumped-7786269.html)



Friday 25 May 2012



The anger surrounding the sharp decline in the value of Facebook shares deepened yesterday when investors who have lost millions discovered that its founder apparently saved more than £110m by selling early.

Mark Zuckerberg, the social network's founder, sold shares in the company worth £720m on Friday, the day it floated on New York's Nasdaq stock market. But the price plummeted soon afterwards, from the $38 a share (£23.95) at which Mr Zuckerberg sold his stock. The price difference meant Mr Zuckerberg saved £111m by getting out early.

The shares closed at $32 on Wednesday, 15 per cent below the float price.

Some investors are now suing Facebook and the banks that organised its public listing for not revealing information about the firm's financial health prior to flotation. One of the lawsuits filed in New York by three investors alleges that the company's documents about its initial public offering, or IPO, included various statements that were not true.

A major point of contention is the claim that a "severe reduction in revenue growth" – linked to the growing numbers of users accessing the website on mobile phones rather than computers – was concealed.

Facebook, which is being sued as a company along with Mr Zuckerberg, other leading executives at the company and its lead underwriters – Morgan Stanley and Goldman Sachs – has denied the claims. Another lawsuit filed in California claims Facebook and its banks actively misled investors. The banks deny any wrongdoing.

However, the claim that Mr Zuckerberg was able to profit by selling his shares in the knowledge that the share value would likely decline, while others bought in without the benefit of the facts, has heightened the controversy.

It has even led to the term "Zucked" being coined to describe what happened to the investors who lost money.

The US Senate Banking Committee has announced it is to investigate the affair, after which its chairman, Senator Tim Johnson, will decide if public hearings should be held.

[Horn]

See if they can generate these kind of schemes off and on again during critical market junctures and election cycles,

they can adjust their dollar velocity charts to make it appear that market actually has some sort of intrinsic value.

[Neuro]

Now at $40-42... bouncing around.

I say it goes to under $20 in less than 6 weeks.

The bet looks better and better now at $28 and something, just 2 weeks in... This should have quite a large effect on a few indexes...

[Twisted Titan]

Mark Zuckerberg saved $111m by selling Facebook shares before stock slumped (http://www.independent.co.uk/news/business/news/mark-zuckerberg-saved-111m-by-selling-facebook-shares-before-stock-slumped-7786269.html)


So we have a Zionist thief make a clean @$$ get away with Goyim money


I'm shocked I tell you absolutely shocked.

[DMac]

definitely the biggest bubble i've ever seen.

this is what a bubble looks like. sort of useful, if/when gold or silver get to this point - then it might be time to sell.


facebookbubble.com

facebubble.com

stealthisfacebook.com

/\ all these domains are taken. i wonder if Facebook did any defensive domain registering.

Quick tangent.....it wouldn't surprise me. When I was evaluating some hosted service providers I looked at a company called rackspace. After some review reading and a little whois searching I found the company rackspace owns the domain rackspacesucks. So, um, yeah - LOL! I would not be surprised in the least.

/tangent

[osoab]

Facebook founder Mark Zuckerberg unable to withdraw cash on Italy honeymoon (http://www.telegraph.co.uk/technology/mark-zuckerberg/9300133/Facebook-founder-Mark-Zuckerberg-unable-to-withdraw-cash-on-Italy-honeymoon.html)

[Spectrism]

LOL... saw this article at the link. Zuckersmooch is too cheap to leave a tip!

http://www.telegraph.co.uk/technology/mark-zuckerberg/9297450/Facebook-founder-Mark-Zuckerberg-left-no-tip-after-Rome-lunch.html

[JDRock]

its a pump and dump.....look at all the jews pumping it! ive been a fairly savvy trader for a long time now and i KNOW one when i see one. goldman sachs sold at near the top then im SURE they shorted it right after they sold...coincidentally during the..uuhh.. "unfortunate glitch" in the nasdaq lol! and, just how does one asses value to a company like this anyway? i mean actual continued revenue?? its just a ny jew play here...stay away

[Neuro]

It being worth a $100 B is just ridiculous but surely it must be worth $70 B! LOL...

[AndreaGail]

Can we rename this thread Tracking the Facebook plunge ?

25.87-1.03(-3.83%)

[osoab]

Can we rename this thread Tracking the Facebook plunge ?

25.87-1.03(-3.83%)

Keep the title as it is and allow Zuckerberg to keep his once rising fame. 25 handle ouch. They were up 2.5%+ early in the day.

[gunDriller]

Keep the title as it is and allow Zuckerberg to keep his once rising fame. 25 handle ouch. They were up 2.5%+ early in the day.

even @ $25 the market cap is $55 Billion.

since the company has already grown like a cancer, any P/E ratio higher than 20 seems very unreasonable.

just as Zuckerberg stole the software to start Facebook, Facebook is vulnerable to another start-up, e.g. Instagram. they can't buy all the start-up's - and many tech entrepreneurs would want nothing to do with Zuckerberg.

$1 billion a year earnings x 20 = $20 Billion - a very optimistic market cap.

$9 stock price gives FaceBilk a $20B market cap - which is still very optimistic.

so FaceBilk might be a "bargain" at $4 a share.

[Neuro]

even @ $25 the market cap is $55 Billion.

since the company has already grown like a cancer, any P/E ratio higher than 20 seems very unreasonable.

just as Zuckerberg stole the software to start Facebook, Facebook is vulnerable to another start-up, e.g. Instagram. they can't buy all the start-up's - and many tech entrepreneurs would want nothing to do with Zuckerberg.

$1 billion a year earnings x 20 = $20 Billion - a very optimistic market cap.

$9 stock price gives FaceBilk a $20B market cap - which is still very optimistic.

so FaceBilk might be a "bargain" at $4 a share.
They won't be able to earn a billion a year for long either. I'll give it a couple of years and they'll make a loss...

[gunDriller]

They won't be able to earn a billion a year for long either. I'll give it a couple of years and they'll make a loss...

:)

Zucker-iceberg could perhaps hock his Academy Award ?


my brother makes his living in web marketing/ PR/ social media/ web analytics. mostly working for Jews. he's a total Facebook advocate.

Facebook is like a cult - a cult run by Jews - the worst kind of cult.

[ShortJohnSilver]

Facebook is all about gathering info, so of course the Jewish folks want the goyim to input all their info into the database for free! Just like the Jews ran the Stasi, the NKVD, etc.

[Neuro]

:)

Zucker-iceberg could perhaps hock his Academy Award ?


my brother makes his living in web marketing/ PR/ social media/ web analytics. mostly working for Jews. he's a total Facebook advocate.

Facebook is like a cult - a cult run by Jews - the worst kind of cult.
Don't give him any food WTSHTF!

[Heimdhal]

so, has the IPO crashed yet! lol.

I had a few family members (younger, sister in law, mainly) that were wanting to dump a few hundred to a few 1,000 in the stock when it first opened. I warned them up and down for a month ahead of time, saying it was a shit investment even if it didnt crash and burn and that obviously gold and silver would bear a greater return per dollar.

Luckily, they are all procrastenators (or perhaps they actualy listened to me for once) and none bought. When the first week closed on the IPO and they saw it tanking and investors bailing, they knew.

My wifes grandfather was going to invest some thousands of dollars (over 10) I believe, but family events got in the way and he was barred access to Grandmas money (she is in early alzheimers and he's been stealing her money for years). He was going to use all HER retirment money. Good thing

[gunDriller]

Facebook is all about gathering info, so of course the Jewish folks want the goyim to input all their info into the database for free! Just like the Jews ran the Stasi, the NKVD, etc.

there is a direct connect between the CIA & Hollywood - and Facebook.

the one time in my life when i interviewed with US gov. intelligence agencies, for computer graphics work, i was offered an introduction to the lead Hollywood talent agent (Michael Ovitz at the time), i'm not sure for what but that was part of the "benefits package" presented.

in any case it sure made the point - the CIA & Hollywood are deeply intertwined. Jew city.

along comes Zuckerberg with a CIA asset (Facebook) and of course they want to give legitimacy to a company founded using stolen software. what better way than to make a movie where the guys whose software is stolen are presented as the "Bad Guys" - and to then pull the strings so that that movie gets an Academy Award.

that was as political a move as Obama's Peace Prize.

of course Hollywood is deep in bed with Israel too. one big unhappy sociopathic family, they are.

[Sparky]

I travel around MA all the time.... sounds like a bet. Now, just to be sure, I am claiming that the price of FB will drop under $20 some time in the next 6 weeks. I know that is a mighty stretch suggesting some reality in its value, but I like to go against the flow.


High of FB today was $45.... closed at approx $38.23. At this rate I just need 3 more trading days. :)

Is this the real reason Spectrism walked away? Only four market days left.

[osoab]

Is this the real reason Spectrism walked away? Only four market days left.

Like you said. Now it's three trading days are left. Still time.

I wonder what facepukes latest stunt with email addresses is going to due to user numbers.

[beefsteak]

Gunny,
I was reading some expose' somewhere, that Zucker was progeny of Rockefeller. That sound 'bout right to you?


beefsteak

[Sparky]

I travel around MA all the time.... sounds like a bet. Now, just to be sure, I am claiming that the price of FB will drop under $20 some time in the next 6 weeks. I know that is a mighty stretch suggesting some reality in its value, but I like to go against the flow.


High of FB today was $45.... closed at approx $38.23. At this rate I just need 3 more trading days. :)

Six weeks ended last Friday. Low point during the period was $25.52. Friday close was $31.09.

\uu\

[gunDriller]

Gunny,
I was reading some expose' somewhere, that Zucker was progeny of Rockefeller. That sound 'bout right to you?

beefsteak

no idea.

how he could afford Harvard, i don't know.

his family tree - well it would be interesting.

[osoab]

23.86 in afterhours

Sparky, did Spec pay up?

[Santa]

http://gold-silver.us/forum/images/misc/quote_icon.png Originally Posted by Sparky http://gold-silver.us/forum/images/buttons/viewpost-right.png (http://gold-silver.us/forum/showthread.php?p=552083#post552083)
Is this the real reason Spectrism walked away? Only four market days left.
\uu\

I think he's convinced that the End Times has arrived and he can no longer dawdle on the Internet.... getting right with God and all that.

He may be right. I don't know....

[Cebu_4_2]

This is going to be a trading stock for a while, regardless of what the hell their business plan is. It will could double it's initial $38 price intraday today, maybe even break $100. The swings should be breathtaking. Don't forget, there's a MASSIVE group of investors waiting for the initial euphoria to settle down so that they can invest billions of long-term dollars.

In order to estimate a crash date, we're going to have to see how long the lockout period is for insiders. Probably somewhere between 90 days and 6 months. The ultimate FB crash won't happen until after that. My guess is that it will accompany the general market crash coming in late 2013.


Yep, ain't that a bitch!

[Horn]

6 weeks of "business" days.

God doesn't work on Saturdays or Sundays.

[Sparky]

23.86 in afterhours

Sparky, did Spec pay up?

His last post was the weekend that the bet ended. No problem; we'll go double or nothing when he comes back! :)

[BrewTech]

I think he's convinced that the End Times has arrived and he can no longer dawdle on the Internet.... getting right with God and all that.

He may be right. I don't know....

I'm actually starting to think he is right. Seriously.