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+--- Thread: How many trading days will it take to give new Facebook shares some stability or equilibrium after IPO begins? (/thread-101349.html)
How many trading days will it take to give new Facebook shares some stability or equilibrium after IPO begins? - Scarlett - 02-19-2014 11:39 PM
http://sg.finance.yahoo.com/news/In-Facebook-IPO-bankers-seek-rsg-851978206.html
- Casey Y - 02-19-2014 11:51 PM
Nobody knows. Even if it appears to have stabilized, there will always be other independent factors weighing on the Facebook price.
- 342 - 02-20-2014 12:01 AM
Don't even worry your pretty little head about it, I've got the Facebook IPO market cornered with the "Uniform Gifts to Minors Act" for Malia & Sasha. I may not be able to buy shares because of the Blind Trust considerations, but nothing's stopping my girls from getting in on the IPO making them the youngest 1 Percenters on earth.
Oh, just because FLOTUS won't allow them to use the Facebook site doesn't mean they can't profit from it.
LOL
- JoeyV - 02-20-2014 12:06 AM
What is this about?
"Your question indicates you "get it" and good for you. This thing is going to be the biggest hype rip off in all of IPO history. " - I don't think "Saddle Up" gets it.
This IPO hasn't been priced and he thinks it's the biggest rip-off in history? He's as bad as the other guy who posted on here today that he is going to buy it on the first day. Maybe when they release the financials and price the IPO it turns out that buyng Facebook is a good idea. The problem with these blowhard opinions is that people don't really understand about valuing a business so they just form blowhard opinions because that's all they can do. Let's just wait and see what Facebook looks like when we have some info about the company and the price.
Anyway, aside from it being premature to speculate on whether Facebook is a good buy or not it is also premature to speculate on when the share price will have some stability. The reason is that price stability has lots to do with pricing and the relationship between the company and the underwriter. We don't even know who the underwriter(s) is (are) yet (I think). That means we don't know anything about green shoe options or what sort of price stabilization the underwriters will likely do. We don't know if the underwriter will oversell the IPO and thus begin the day short. We don't know what the pundits will sell about the stock. Etc, etc...
Why can't everyone just wait on this until some details come out?
Edit:
BTW - This comment " Just research the last five big IPOs and what I said about waiting 30 calendar days will be clearly evident." is also misleading. The answer would be that they lost value, but change that "five" to "five hundred" and you get quite a different answer. Now in most of the world when you compare a result with 500 observations to one with 5 observations, the result with 5 loses. Now those 5 are more recent and include a higher concentration of social networking IPO's, but reasonable people can disagree about which result wins here. Especially if we knew the price.