Saturday, May 19, 2012

Schadenfreude alert

Facebook's IPO was a dud. The stock's price at issuance was 38.00 USD a share, it closed at 38.23. Generally a successful IPO for a tech company will show a 10%-15% gain on the first day of trading.

A couple of reports that I've seen, blame the tepid market for Facebook on insiders selling and institutional buyers being over subscribed. Both reports are troubling if you hope that the value of this company will grow.

Kim

1 Comments:

Anonymous VJ said...

No, not going to happen. And there's little prospect of it actually working, if you just look at the numbers. And yes, most 'pro's' already figured this out, hence the over-hype requirements for the issue. Rubes will never learn, and ever be the reliable milch cows for the syndicate. SSDD. Cheers & Good Luck, 'VJ'

8:22 AM  

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