Facebook, Inc.

[Michael Scally MD]

Facebook, Inc.
Registration Statement on Form S-1

GOING PUBLIC TODAY!!!

 

[Michael Scally MD]

POLL: Where Does Facebook's Stock Close Today?
POLL: Where Does Facebook's Stock Close? - Business Insider

I guessed $75-80.

 

[blubbard]

SELLER in SIZE.

 

[Michael Scally MD]

Investor Relations
http://investor.fb.com/index.cfm

 

[blubbard]

poll: Where does facebook's stock close today?
poll: Where does facebook's stock close? - business insider

i guessed $75-80.

37.50

 

[Michael Scally MD]

The Epic Battle to Defend Facebook’s IPO Price
The Epic Battle to Defend Facebook’s IPO Price | The Reformed Broker

 

[blubbard]

The Epic Battle to Defend Facebook’s IPO Price
The Epic Battle to Defend Facebook’s IPO Price | The Reformed Broker

I saw a 10 million share bid at 38 around 3:40 PM on friday that got whacked pretty hard before someone came in and sweeped the offers and lifted the stock off 38. Wasn't a good short term sign, as we can see today.

 

[Millard]

The Tragedy of Facebook: How Wall Street Robbed Main Street America (FB)

As Reuters reports, information was "selectively disclosed." That situation might be more acceptable if the cuts were the result of good research from each bank's analysts -- but that wasn't the case. Reports from Business Insider reveal that the bank's analysts cut estimates because a Facebook executive told them to!

If the press reports are to be believed, in a nutshell Facebook signaled that its growth was worse than expected. Instead of spreading the word to individual investors, the Wall Street underwriters selling Facebook pursued a strategy of raising the offering price and targeting more shares for the individual investors -- who remained in the dark. Wall Street was taking Main Street America for a ride.

The idea of Facebook's IPO going negative represented a huge PR disaster to lead underwriter Morgan Stanley (NYSE: MS ) , so the company began buying up tons of Facebook shares, providing "support" that led the stock to bounce back.

Perversely, while Morgan Stanley was supporting the Facebook IPO from disaster, according to The Wall Street Journal underwriters Goldman Sachs (NYSE: GS ) and JPMorgan (NYSE: JPM ) were lending out shares to be sold short, an action that provided additional selling pressure on Facebook's shares. Many of those short-sellers were likely acting on the knowledge of Facebook estimates that were reduced downward just days earlier -- again, information that was only selectively disseminated and wasn't known by the average individual investor racing to buy Facebook shares.

Morgan Stanley was in charge of an overallotment of Facebook shares used to aid the "stabilization" process -- keeping Facebook from plummeting too far. However, by selling more shares into the market (through the overallotment) than it owned, Morgan Stanley had the net effect of profiting from Facebook's fall! Once again, The Wall Street Journal was on the case and detailed how underwriters notched about $100 million from trading Facebook even as its shares plunged earlier this week.

Be sure to read all WSJ links too