Facebook IPO

[NW-Bound]

It's very hard to predict which of these "new economy" companies will prosper (does anybody use that term anymore?). Take Google for example. I was not interested at all in Google IPO, though its search engine had been my favorite. Then, I see that they have been doing a lot of neat stuff. But how would one know and how would one put a valuation on that? I prefer to be like Buffet. He admits that he does not know, and would rather put his money elsewhere. He said he could not even evaluate Microsoft and other big tech companies.

 

[Animorph]

Morningstar has been saying $19 is their "consider buying" price, with a fair value of $32 IIRC.

I've been buying as it falls, last was at $18.84. Hopefully it won't go all the way to $5, but you never know. It is depending a lot on suddenly becoming more profitable.

 

[rbmrtn]

Here's some interesting comments on FBs IPO prospectus...

It

 

[Hamlet]

Hey, if you're buying an IPO, you don't need to read the prospectus.

You just let it pop on the issue date and sell it to the next guy.

Here's some interesting comments on FBs IPO prospectus...

It

 

[kcowan]

You can buy bonds at IPO and avoid the broker fees.

 

[stocktrader]

Morningstar has been saying $19 is their "consider buying" price, with a fair value of $32 IIRC.

Here is an interesting article that talks about Morningstar's rating of Facebook stock, and why it might not be reliable. ThinkTrade Journal - August 28, 2012 - Morningstar: Facebook report and valuation

 

[Animorph]

I'm out of Facebook now, with about a 10% profit.

5/17/2012 bought 50 shares @ $38.00 (IPO)
5/22/2012 bought 50 shares @ $31.60
6/4/2012 bought 50 shares @ $26.69
8/16/2012 bought 150 shares @ $19.75
12/3/2012 sold 300 shares @ $28.75

A little over $800 gain after all costs. A happy ending! Waiting for that final 10% gain was the hardest part.

This is my usual procedure for a stock that is volatile and is not dropping due to some big impairment. I'm out altogether now because FB was just a fun play, not part of my AA.

 

[kcowan]

Upthread you mentioned buying at 18.84 - was that before brokerage fees?

Anyway, well done keeping the faith on the way down.

 

[Midpack]

I don't (directly) own any FB, but always interesting when such a high profile insider sells.

Sheryl Sandberg Has Sold More Than $40 Million in Facebook Stock So Far

While these numbers might sound large, they still represent just a small fraction of Sandberg's Facebook shares.

These announcements came shortly after Peter Thiel, another prominent member of Facebook's board, sold off the majority of his 26.2 million shares of Facebook, pushing the stock price down to a new low.

http://mashable.com/2012/12/10/sheryl-sandberg-sells-facebook-stock/

 

[ChiliPepr]

Sheryl Sandberg Has Sold More Than $40 Million in Facebook Stock So Far

http://mashable.com/2012/12/10/sheryl-sandberg-sells-facebook-stock/

I think you also have to look at how much she sold, she sold about 10% of her holdings... This could easily be chalked up to "reallocation". She had about $200million in FB stock, it would make sense to pull some out and put it into something different. Many people in the .com era made millions on paper and never sold any, when the market crashed they lost everything (and many went bankrupt because they still had to pay taxes on their options).

Isn't that what we do all the time?

I think it is much more telling when insider buy the stock.