Facebook's Anticipated Share Price Raised From $28-$35 to $34-$38

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Facebook's Anticipated Share Price Raised From $28-$35 to $34-$38 [bbc.co.uk]

Facebook has raised the price at which it hopes to sell its shares from $28-$35 to $34-$38, potentially putting its total value above $100bn (£62.2bn).

The company said strong demand had pushed up the price. Trading in the shares is expected to begin on Friday.

A valuation at this level would make it worth more than the US corporate giants Disney, Ford and Kraft Foods.

[Dinkar]

just a new bauble.

[frankbomarito]

Seems there is a pretty good chance that after the initial excitement the stock will drift lower for a while.

GM's action (quitting advertising on Facebook) is not surprising, advertisers have always eschewed forums (no offense to our hosts) because they are notoriously light clickers.

[Marshall]

As I said here Facebook Raises its Share Offering, Again, To $35-$38 Per Share [webmasterworld.com], Given the fact GM pulled its advertising from facebook as it felt it was not worth the cost, Big Brand GM withdraws 10mil in ad dollars [webmasterworld.com], and I am sure other companies fell the same way, is this really a practical move for facebook? More important, is it a wise buy for investors.

Marshall

[aleksl]

"The company said strong demand had pushed up the price. "

Ha-ha. Golmdan Sachs who owns the majority of shares throuhg its many affiliates (such as "russian" DST who operates with Golman's money, and probably many Goldman's clients too) said to make it a $100 Bln.

Had there've been any serious business prospects - say, like Google or Apple has - why would Goldman Sachs push it to IPO...

Hence, it is a classical pump-n-dump.


Buying it would be just foolish gambling, IMHO.

[frankbomarito]

There is an unusually short a 90 day lockup of initial sharea [cnbc.com...] that could hasten a selloff as initial purchasers and insiders cash in their profits

[Strapworks]

Didn't they also increase the number of stocks pre-investors are selling off from 2.7million to 3.5million?
I definitely think that those companies that currently own a portion of Facebook have inflated the value and are going to cash out as quick as possible, very well knowing that the company can't hold a $100billion value for very long.
I wouldn't be surprised if Zuckerberg sells off half of his stock immediately also.
The rich get richer and the poor get taken advantage of.

[woop01]

Where exactly are the poor getting taken advantage of?

[Leosghost]

Possibly because their pension funds will be invested in this crap, by those pension fund investment managers, who will get a commission for doing so ..and when ( as it will ) it all goes TU..they will keep their commissions..and the poor folks pension funds will be "light" the bad investment..

Even worse if banks invest..( and those who work at the banks and do the investing have had their commissions ).then when it all proves to be the scam that it is..the banks will be bailed out..from the poor folks taxes..

Who will be told that they must tighten their belts for the good of ...

[Leosghost]

I forgot the bonuses..and the golden parachute for the token investment fund manager who may get fired if the clamour grows loud enough when the VCs , Mark and Goldman cash in and the new share owners find out that waaaaay over valued scrip is just waaaay over valued scrip..

You gotta pay bonuses, and huge salaries, and golden parachutes..else how you gonna keep the most talented CEOs,FOs Manag^^^^^^^pickpockets..in yachts, Merc SLKs, Rollers and McMansions..

[Strapworks]

Where exactly are the poor getting taken advantage of?

Really?

@Leosghost answered it better than I could.

[woop01]

You got just about every cliched 'corporations are evil' bullet point in.

Do you not see how you just blamed the impending colapse of the entire financial system on one company going public?

[bill]

Do you not see how you just blamed the impending colapse of the entire financial system on one company going public?

You may be reading too much into the answer if you see that. I saw it as an answer to your earlier question.

[Leosghost]

No problem with "corps"..pumped corps yes ..and especially those who pump them ..and then arrange for their friends to buy in with other peoples money just to get the bonuses and commissions..

The financial system did collapse in 2008 ( did you not notice ? ) just because of the same people ( Goldman in particular ) pushing worthless toxic products in order to get the commissions..they walked away with the commissions..as did all their friends..worldwide the poor folks got screwed as their pension funds became essentially void..then their governments bailed out the same banks who were in cahoots with Goldmans ( and whose officers all got commisssions )..and then pulled "austerity on their tax payers..so the poor folks paid twice..

A couple of traders were sacrificed..hands were wrung ..those who got commissions for buying crap paper..kept their money, yachts, cars, houses..and the poor folks who paid for it twice got thrown on the streets..

And now it is all happening again..same players..same system..same scams..the financial system in it's current version should have collapsed in 2008..and been cleaned up and many "commission earners" should have gone to jail around the world..But it didn't collapse ( not for them anyway )..and now they ( the same people ) are pumping Facebook, Groupon, Pinterest etc and any other way they can find to get the commissions again..

An incompetent plumber gets fired..an incompetent ( or corrupt ) CEO , FO, merchant banker, stock trader ..they get a huge salary bonus and a golden parachute..and invited back in for the next round..

You can put your money into facebook..but not mine ..nor anyone else's via their pension fund etc..

The guys who run IPOs don't like people who can do math without taking their shoes and socks off..Unless you stand to make some commission on these IPOs ? there is no reason to claim they are a good thing or that their total paper value is worth 100 x current yearly earnings..

If you really do believe their pumped figures and projections..

I have this bridge for sale..