FaceAche

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  • Peddle Up!
    Peddle Up! Posts: 2,040
    EKIMIKE wrote:
    EKIMIKE wrote:
    But you can't take a market at face value. Look at it's composition - a dearth of sound reasoning, a multitude of excitement and hype in this case. Markets aren't always right.

    http://www.bbc.co.uk/news/business-18141990

    Thank you. That is all. :lol:

    As I said.

    And "markets". Who are they? Really?
    Purveyor of "up" :)
  • EKIMIKE
    EKIMIKE Posts: 2,232
    edited May 2012
    You wouldn't mind summarising that would you? I have read far too much in the past week (exam prep) to want to read any more.

    Anyway, i guess a market is any construct where 'things' are bought and sold. Painfully wide, painfully used as a technical term with specific meaning. Sort of like referring to objects on/with wheels (ranging from cars to suitcases) as 'wheels'. It doesn't really help anyone.

    But i guess that's the whole point with many types of market - they don't want the general public (or clients) to know what is going on. Knowledge is power innit.

    Another thing i was puzzled about was how they were 'allocating' shares in Facebook before they were actually listed and openly traded on the NASDAQ. Well, if the price is really all about what the market determines then how does 'allocation' fit into a system of trade? The answer: it doesn't. The bloody 'market'. Really... give me a break.
    Canyon Endurace CF 2014 | Canyon Ultimate CF 2010
  • EKIMIKE
    EKIMIKE Posts: 2,232
    Duplicate post
    Canyon Endurace CF 2014 | Canyon Ultimate CF 2010
  • daviesee
    daviesee Posts: 6,386
    Peddle Up! wrote:
    EKIMIKE wrote:
    EKIMIKE wrote:
    But you can't take a market at face value. Look at it's composition - a dearth of sound reasoning, a multitude of excitement and hype in this case. Markets aren't always right.

    http://www.bbc.co.uk/news/business-18141990

    Thank you. That is all. :lol:

    As I said.

    And "markets". Who are they? Really?
    Any right minded person knew it was coming. I also posted this "news" on Friday but I won't claim any credit.
    There was a financial guy on the BBC news on that Friday explaining exactly what would happen and why.
    Sheep to the slaughter bought anyway........
    None of the above should be taken seriously, and certainly not personally.
  • rick_chasey
    rick_chasey Posts: 75,661
    The average IPO 'pops' 18% higher than the normalised value.

    So, arguably, the facebook IPO has been valued better than other IPOs.
    _
  • Cressers
    Cressers Posts: 1,329
    I think that be only the start of the slide. There's been an outbreak of irrational exuberence and it's bound to correct itself. More fool the people who bought the shares.
  • upperoilcan
    upperoilcan Posts: 1,180
    pauldavid wrote:
    I've never had a face ache account despite being told by all of my friends that I should have one when it became popular "cos it's great for keeping in touch with everyone" my response was always "but surely we are keeping in touch by taking face to face now"

    Exactly,i'm the same,i really do not need or want a Face Ache acc......
    Cervelo S5 Ultegra Di2.
  • TheStone
    TheStone Posts: 2,291
    I'm amazed they were valued so high, but with all the hype I expected them to go higher for maybe a few months.

    It's concerning if the underwriters are still holding huge positions and the market is selling.

    Around 90% of the valuation is based on them continuing to grow and/or finding other ways of creating income from their users. I'm not convinced either will happen. For my demographic, 'peak' facebook was probably 2 years ago. Everyone deserting now.

    Eventually only the mental will be left on there.
    exercise.png
  • Peddle Up!
    Peddle Up! Posts: 2,040
    TheStone wrote:
    Eventually only the mental will be left on there.

    T'was ever thus. :lol:
    Purveyor of "up" :)
  • daviesee
    daviesee Posts: 6,386
    $32.57 in NASDAQ pre-opening.
    It could take a tanking.
    Financial guy on BBC news, Friday, guessed at it settling at around $25 (IIRC).
    None of the above should be taken seriously, and certainly not personally.
  • TheStone
    TheStone Posts: 2,291
    daviesee wrote:
    $32.57 in NASDAQ pre-opening.
    It could take a tanking.
    Financial guy on BBC news, Friday, guessed at it settling at around $25 (IIRC).

    Lower. $5-10 I reckon.
    Sounds like the underwriters all dropped their earnings forecasts, but didn't tell anyone.
    exercise.png
  • neiltb
    neiltb Posts: 332
    you could see it coming by reading the news over the last couple of weeks, GM dumping them, more and more people using ad free aps, low earnings per user.

    got out 18 months ago and never looked back.
    FCN 12
  • verylonglegs
    verylonglegs Posts: 4,023
    You wonder why so few buyers are questioning why Zuckerberg has decided to let them in now. He obviously has access to the all important numbers and has seen something that makes him think it's time to cash in.
  • EKIMIKE
    EKIMIKE Posts: 2,232
    daviesee wrote:
    I won't claim any credit.

    Don't think anyone was trying to anyway... :?

    The :lol: was meant to insinuate the tinge of irony that whilst this situation was highly likely, there will always be some one willing to claim they know exactly what will happen because they 'understand markets'. Frankly it's a 50/50 gamble. Up or down. Dependent on the incidental collective 'mood' of traders who happen to interact with Fb stock.

    I mean if news broke tomorrow that Mark Zukerberg was a paedo (which he is not as far as I am aware) the stock would no doubt take a hit on the back of the inevitable negative feeling amongst traders because paedophiles are overwhelmingly disliked by most people. Far removed from even business fundamentals let alone any other measurable variables.

    This is all a big game in which people's subjective judgement ultimately plays a huge role (of course other things play a role too). I mean, that stock could move depending on what car Zuckerberg drives or the clothes he wears, just as it might move on release of annual trading figures.

    I find it highly amusing (yet very scary at the same time). :lol:
    Canyon Endurace CF 2014 | Canyon Ultimate CF 2010
  • daviesee
    daviesee Posts: 6,386
    EKIMIKE wrote:
    daviesee wrote:
    I won't claim any credit.

    Don't think anyone was trying to anyway... :?

    ................... :lol:
    I think you misunderstood me there.
    My point was that I am no genius. The info that the shares were going to flop was not only out there but shouting from the rooftops. The people that bought were either sheep, muppets or both.
    None of the above should be taken seriously, and certainly not personally.
  • DavidJB
    DavidJB Posts: 2,019
    Its standard practice in the IT industry never to 'delete' data. You just flag it as 'deleted' but it's still in the database, every company in the world does it like this unless they are idiots.
  • SmellTheGlove
    SmellTheGlove Posts: 697
    This is tragic The 'muppets or sheep' comment above seems so appropriate; you might add in the light of this announcement, spoilt children.
    "Consider the grebe..."
  • TheStone
    TheStone Posts: 2,291
    This is beginning to get quite interesting. Zuck sold a tonne of shares yesterday. It's clear they misled investors.
    exercise.png
  • Peddle Up!
    Peddle Up! Posts: 2,040
    The rats eating each other. :twisted:
    Purveyor of "up" :)
  • daviesee
    daviesee Posts: 6,386
    SmellTheGlove wrote:
    This is tragic The 'muppets or sheep' comment above seems so appropriate; you might add in the light of this announcement, spoilt children.
    People find out the hard way that the value of your shares can go down as well as up.
    Muppets!
    None of the above should be taken seriously, and certainly not personally.
  • inkyfingers
    inkyfingers Posts: 4,400
    daviesee wrote:
    SmellTheGlove wrote:
    People find out the hard way that the value of your shares can go down as well as up.
    Muppets!

    Considering that the vast majority of buyers will have been institutional or professional investors then I think they will probably have known that.
    "I have a lovely photo of a Camargue horse but will not post it now" (Frenchfighter - July 2013)
  • daviesee
    daviesee Posts: 6,386
    inkyfingers wrote:
    daviesee wrote:
    SmellTheGlove wrote:
    People find out the hard way that the value of your shares can go down as well as up.
    Muppets!

    Considering that the vast majority of buyers will have been institutional or professional investors then I think they will probably have known that.
    Which makes them institutionalised and professional muppets :wink:
    and we wonder why banking is in the state that it is.................. :(
    None of the above should be taken seriously, and certainly not personally.
  • rick_chasey
    rick_chasey Posts: 75,661
    inkyfingers wrote:
    daviesee wrote:
    SmellTheGlove wrote:
    People find out the hard way that the value of your shares can go down as well as up.
    Muppets!

    Considering that the vast majority of buyers will have been institutional or professional investors then I think they will probably have known that.

    Lawyers have got their knives out on this one. They want their slice of the cash too ;).
    _
  • rick_chasey
    rick_chasey Posts: 75,661
    daviesee wrote:
    inkyfingers wrote:
    daviesee wrote:
    SmellTheGlove wrote:
    People find out the hard way that the value of your shares can go down as well as up.
    Muppets!

    Considering that the vast majority of buyers will have been institutional or professional investors then I think they will probably have known that.
    Which makes them institutionalised and professional muppets :wink:
    and we wonder why banking is in the state that it is.................. :(

    If you know more than these institutions and professional investors, I urge you to start doing it yourself. You'd make a FORTUNE. :|
    _
  • daviesee
    daviesee Posts: 6,386
    Rick Chasey wrote:
    If you know more than these institutions and professional investors, I urge you to start doing it yourself. You'd make a FORTUNE. :|
    Well, my investments have gone up 6% since the turn of the year.
    Facebook shares have dropped @ 16% in the past week.

    Not a fortune but not bad. :P
    None of the above should be taken seriously, and certainly not personally.
  • EKIMIKE
    EKIMIKE Posts: 2,232
    daviesee wrote:
    I think you misunderstood me there.

    My bad.

    I dunno if they were muppets. It's a hard one to quantify. You could reason it that such was the hype, even an inflated price may still rise further upon actual commencement of trading.

    It's good to see at least some scepticism in this area 'cos it's rich ground for bubbles. I mean the Groupon IPO is just frightful.
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