News
news The Great Lakes Are Still Almost Half Frozen, And It Could Affect The Environment For Years
news Oscar Mayer Wieners Recalled
news Large-scale asteroids have hit Earth 10 times more often than previously thought
news New Killer Sponges Found in the Deep Sea
news Frigid Winter? Blame 4,000 Years of Wild Jet Streams
news US approves 'Palcohol' - powdered alcohol is on the way
news Will 4/20 become an official Colorado Holiday?
news Clinton Conspiracy Memo Released
news Brain's Anti-Distraction System Discovered, Possible Breakthrough To Fight ADHD
news The United States Democracy Or Plutocracy?
news Cosmological Natural Selection, does it define the purpose of our Universe?

Username:
Password: or Register
 
Thread Rating:
  • 13 Votes - 4 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Facebook Stock May Tank This Week As Banks Run For The Hills
Galaxy staff
Luctor et emergo
User ID: 68880
05-21-2012 11:35 AM

Posts: 19,167



Post: #1
Facebook Stock May Tank This Week As Banks Run For The Hills
NEW YORK (Reuters) - Newly issued shares in Facebook Inc <FB.O> may have a hard time in the coming week if lead underwriter Morgan Stanley stops supporting the stock and managers lower down in the IPO book who were hoping for an early surge decide to get out before going underwater.

Facebook on Friday sold 421 million shares of stock in a deal that valued the company at more than $100 billion. But investors, expecting a first-day pop in price, instead saw it close just 0.6 percent above the IPO price at $38.23.

As the underwriter, Morgan Stanley <MS.N> stepped in to support Facebook's stock when it fell toward its $38 IPO price shortly after it opened, a source familiar with the matter told Reuters. The shares spent much of the last hour of Friday trading near that price, with onlookers watching to see if it would post a $37.99 price - which it did not.

But the bank will not support the stock indefinitely, analysts said, and once that firepower is gone, funds that received IPO stock looking for a bounce may decide to bail as well.

Lead underwriters in a stock essentially "short" the stock through what is known as an "over-allotment" of shares - they sell shares to the market that they do not own. If the stock has trouble, which Facebook did, the underwriter supports it by then buying more stock at the IPO price.

Had Morgan Stanley bought all of the shares traded around $38 in the final 20 minutes of the day, it would have spent nearly $2 billion. The "green shoe" overallotment, which can be used to support Facebook's stock, is 63 million shares. At $38 per share, that amounts to $2.4 billion in firepower.

In an IPO where the stock rises significantly, the green shoe is typically exercised in the days after the debut and the company raises that additional amount. If Morgan Stanley shorted the full amount and bought shares on the open market to support the price, Facebook will not raise the extra $2.4 billion from the IPO.

"Right now you have one big buyer, Morgan Stanley," said a former chief operating officer for Bear Stearns, who dealt with IPOs on the investment bank's syndicate allocation committee, but asked not to be named as he did not want to talk publicly about the issue.

"That's what people are trying to figure out, how much of the shoe is left," he said. "In most deals, on the Friday that would be it; come Monday, it would be all bets are off, by Tuesday for sure."

That opens the door for short-sellers and institutions looking to get out. Short-selling is expected to be limited for a few more days. A prime broker on one of the lead underwriters said Friday that they would not be lending shares at least until settlement, which comes three business days after pricing.

In addition, with the stock market in correction mode as investors fret about Europe's ongoing debt crisis and the outlook for global growth, the environment for a new stock is not ideal.

That could mean the stock's fate will depend on the strength of the IPO anchor orders - the big clients at the top of the IPO book, who see Facebook as a core holding - as well as a host of retail clients who are less likely to sell their shares quickly and may even be enticed to buy more.

"It is very likely to dip under $38, particularly if overall market conditions deteriorate," said Mohannad Aama, managing director at Beam Capital Management in New York. "Morgan Stanley will continue to defend the $38 price, but that support is not endless."

Read more: http://www.businessinsider.com/tag:reute...z1vUlhg5qF

In the beginning there was nothing...and even that exploded..
Quote this message in a reply
Luvapottamus
Registered User
User ID: 82349
05-21-2012 11:54 AM

Posts: 27,856



Post: #2
RE: Facebook Stock May Tank This Week As Banks Run For The Hills
Release the TWEENS!

Facebook may lift ban on children under 13
By JohnThomas Didymus
May 20, 2012 - 12 hours ago in Internet

Facebook is set to lift the ban on children under the age of 13 using the site. A spokesperson of the company said the decision to lift the ban was consistent with the fact that a large number of under-13-year-olds are already using the social network.
Daily Mail reports that the announcement comes after Facebook's flotation on the stock market at a price of $38 per share. The valuation puts the company's worth at over $100 billion.
According to PC World, the present Facebook terms of service says that a member must be at least 13 years old to set up an account. However, recent Consumer Reports survey indicates that as many as 7.5 million Facebook users are under the age of 13 and that two-thirds of the number are under 10. According to CNN, about half of 12-year-olds and 64 percent of 13-year-olds are using Facebook.
CNet reports that a recent survey suggests that 38 percent of kids on Facebook are aged 12 or younger. The survey carried out by a company called Minor Monitor, suggests that 4 percent of kids on Facebook are 6 years old or less...

Read more: http://www.digitaljournal.com/article/32...z1vUpqKmAn

Look it's Justin Bieber!

Like! Like ! Like! Like! Like! Like ! Like! Like! Like! Like ! Like! Like! Like! Like ! Like! Like! Like! Like ! Like! Like! Like! Like ! Like! Like! Like! Like ! Like! Like! Like! Like ! Like!

http://www.youtube.com/watch?v=U63klXlJjkU

There is no such thing as sovereign debt. Nationalize monetary policy at the FED, reinstate Greenbacks.
Wall Street Sales Tax http://www.youtube.com/watch?v=Vb5OQUElilo
United Front Against Austerity
Quote this message in a reply
Bagatell
user Variable
User ID: 9614
05-21-2012 11:58 AM

Posts: 2,431



Post: #3
RE: Facebook Stock May Tank This Week As Banks Run For The Hills
Quote:On Saturday, Mark Zuckerberg updated his status to "married", as he wed Priscilla Chan in a surprise ceremony at his Palo Alto home. Nothing wrong with that - the couple have been together since their student days, and the pictures posted on Facebook of the shy groom - in a suit not a hoodie - and his bride were rather sweet.

But, hey Mark, why did you not do what you tell the rest of us to do, and share your plans with your Facebook friends a few months ago? If you'd made it an upcoming "event", then you and your fiancee would have seen plenty of useful adverts from cakemakers, dress designers, florists and all the other wedding businesses which now find the social network a great place to market their services.

Of course he wasn't going to do that - even if the "event" had only been visible to close Facebook friends, it would have been bound to leak out. But Mr Zuckerberg's whole philosophy - and the future revenues of his business - revolves around the idea of the "frictionless sharing" of every detail of our lives. And if more of us decide, like him, that there is a downside to letting it all hang out, then the advertising cash may grow more slowly than the $104bn valuation implies.

http://www.bbc.com/news/technology-18142...icRSS20-sa

Here time turns into space.
Quote this message in a reply
Nailer45
Registered User
User ID: 97616
05-21-2012 12:46 PM

Posts: 2,349



Post: #4
RE: Facebook Stock May Tank This Week As Banks Run For The Hills
those that buy facebook stock are retards.

why would you invest $$$ in a so called company that produces no physical product.

facebook is a glorified chatroom that sells your info to the highest bidder and gives the government access to all your info without a fight.

If I invest money in a business it has to physically produce products that can be sold to the public for use.
Quote this message in a reply
Galaxy staff
Luctor et emergo
User ID: 68880
05-21-2012 12:59 PM

Posts: 19,167



Post: #5
RE: Facebook Stock May Tank This Week As Banks Run For The Hills
Nailer45  Wrote: (05-21-2012 12:46 PM)
those that buy facebook stock are retards.

why would you invest $$$ in a so called company that produces no physical product.

facebook is a glorified chatroom that sells your info to the highest bidder and gives the government access to all your info without a fight.

If I invest money in a business it has to physically produce products that can be sold to the public for use.

Besides that, why would you buy a stock with an insane 1:100 price/profit ratio.

A 1:20 ratio is already an expensive stock.

In the beginning there was nothing...and even that exploded..
Quote this message in a reply
LoP Guest
lop guest
User ID: 65558
05-21-2012 01:01 PM

 



Post: #6
RE: Facebook Stock May Tank This Week As Banks Run For The Hills
"who were hoping for an early surge decide to get out before going underwater"

and no one has yet to particalize this "shell" used by Obama supporters as far as its' waka-doo-waka-doo to Organized Crime in its' financing.....

Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Morbi commodo, ipsum sed pharetra gravida, orci magna rhoncus neque, id pulvinar odio lorem non ...

http://www.youtube.com/watch?v=HHZhw94C5...re=related
Quote this message in a reply
LoP Guest
lop guest
User ID: 65558
05-21-2012 01:07 PM

 



Post: #7
RE: Facebook Stock May Tank This Week As Banks Run For The Hills
Quote this message in a reply
Omni
Registered User
User ID: 80044
05-21-2012 01:17 PM

Posts: 70



Post: #8
RE: Facebook Stock May Tank This Week As Banks Run For The Hills
I wonder when investors will examine the reality of a social datadase that is valued at 100 billion+; Google's approch will ultimately be more ubiquitous it seems to me.
Quote this message in a reply
GREY LENSMAN staff
Blue Crystal Storm
User ID: 97360
05-21-2012 01:22 PM

Posts: 13,547



Post: #9
RE: Facebook Stock May Tank This Week As Banks Run For The Hills
THE DIRECT DISINFO CONTINUES

QUOTE

Facebook on Friday sold 421 million shares of stock in a deal that valued the company at more than $100 billion

UNQUOTE

CAPITALISATION

"ISSUED SHARES TIMES MARKET PRICE"

IN THIS CASE 16 BILLION, NOT 100.

GL

The full force of Natural and Common Law shall be applicable at all times in all places and cannot be annulled by the declaration of emergency, war or other device by any State or entity.


[email protected]
Quote this message in a reply
LoP Guest
lop guest
User ID: 65558
05-21-2012 01:26 PM

 



Post: #10
RE: Facebook Stock May Tank This Week As Banks Run For The Hills
Omni  Wrote: (05-21-2012 01:17 PM)
I wonder when investors will examine the reality of a social datadase that is valued at 100 billion+; Google's approch will ultimately be more ubiquitous it seems to me.

I have a "beleif" that it will not be the "investors" with their own money who will try to prop up this thing out of the gate, but those who are steering others money.

For some, the "Taint" of OC (organized crime) is definitly going to be the 10-foot pole test, but for a handful (and it won't take many) who seek "whatever" from the clique of Liberals, they will possibly burn a bridge or two (with others money) in order to gain the favor of the clique in DC and its' octopus tenticals. (watch volume and not just price, as well as SEC filing with WHO is buying for flip vs hold).

http://www.youtube.com/watch?v=f9eHp7JJg...re=related
^^^^^ :-) ^^^^^
Quote this message in a reply
LoP Guest
lop guest
User ID: 65558
05-21-2012 01:29 PM

 



Post: #11
RE: Facebook Stock May Tank This Week As Banks Run For The Hills
Omni  Wrote: (05-21-2012 01:17 PM)
I wonder when investors will examine the reality of a social datadase that is valued at 100 billion+; Google's approch will ultimately be more ubiquitous it seems to me.

btw, cool avi :-)
Quote this message in a reply
LoP Guest
lop guest
User ID: 65558
05-21-2012 01:34 PM

 



Post: #12
RE: Facebook Stock May Tank This Week As Banks Run For The Hills
Quote this message in a reply
Indigenous Intelligence
Registered User
User ID: 70676
05-21-2012 02:55 PM

Posts: 2,395



Post: #13
RE: Facebook Stock May Tank This Week As Banks Run For The Hills
$36.68 and FALLING

Doom on!
Quote this message in a reply
Pi
Infinity
User ID: 3.14159265
05-21-2012 02:59 PM

 



Post: #14
RE: Facebook Stock May Tank This Week As Banks Run For The Hills
Nailer45  Wrote: (05-21-2012 12:46 PM)
those that buy facebook stock are retards.

why would you invest $$$ in a so called company that produces no physical product.

facebook is a glorified chatroom that sells your info to the highest bidder and gives the government access to all your info without a fight.

If I invest money in a business it has to physically produce products that can be sold to the public for use.
Quote this message in a reply
Galaxy staff
Luctor et emergo
User ID: 68880
05-21-2012 04:03 PM

Posts: 19,167



Post: #15
RE: Facebook Stock May Tank This Week As Banks Run For The Hills
Indigenous Intelligence  Wrote: (05-21-2012 02:55 PM)
$36.68 and FALLING

Doom on!

-12 % now

Banks do not support it anymore, as predicted.

In the beginning there was nothing...and even that exploded..
Quote this message in a reply








Contact UsConspiracy Forum. No reg. required! Return to TopReturn to ContentRSS Syndication
HiFi High-End Audio PSUs for Laptops, Netbooks, Phono Preamps, USB Cables.

Valid XHTML 1.0 Transitional Valid CSS 2.1