1.6 Billion Facebook Shares Eligible to Come To Market From Thursday

[engine]

1.6 Billion Facebook Shares Eligible to Come To Market From Thursday [nytimes.com]

The next test for the stock could come soon. Over 1.6 billion shares will be eligible to come on the market in several waves, starting on Thursday, when a number of shareholders are allowed to sell. Investors may fear that an influx of shares could cause prices to fall even more.

“It becomes a company perceived as vulnerable rather than invincible,” said David B. Yoffie, a Harvard Business School professor who sits on several technology company boards, though none that relate to or compete with Facebook.

[Robert Charlton]

Facebook hits new low as IPO lock-up ends
AP News - BloombergBusinessWeek
August 16, 2012
[businessweek.com...]

SAN FRANCISCO (AP) — Facebook's stock plunged to a new low Thursday as some of the social networking leader's early backers got their first chance to sell their shares since the company's initial public offering went awry....

...Given that most of these investors put their money into Facebook five to eight years ago, they probably were eager to sell, said Sam Hamadeh, CEO of PrivCo, which researches privately held companies.

...Hamadeh believes the venture capitalists who invested in Facebook realize it's a "fool's game" to wait for a better price on the stock....

I heard some Public Radio discussion yesterday, though, which suggested that a drop at the end of the lock-up period is to be expected, and rule of thumb is that a drop of more than 10% is essentially a vote of no confidence by insiders. The drop today was down "more than 6 percent"... which is less than 10.

That said, the stock is almost 50% below its IPO price. The details of who sold today won't be public for a few days, and other restrictions about who can sell will be removed in coming months.

[SevenCubed]

I wonder if they are taking into account a lock-up period where all outstanding locked-up shares become eligible at the same time compared to with Facebook where it was some today, more in October, and finally the balance not until next May. If it was a situation of "all-in" today with all outstanding it could have been much worst than 6%

[Leosghost]

The drop today was down "more than 6 percent"... which is less than 10.

Depends how much of the spread between the 10% and the 6%, was down to artificial "support" by those trying to "suckerberg" in still more "Marks"..

Agree with SevenCubed , IMO if it had been "all-in" today ..would have been a bloodbath, complete with jumpers..