Tuesday, January 20

Facebook, One Year Later: What Really Happened in the Biggest IPO Flop Ever


Couple of things to note here. Ipo's are strange times to buy and sell. The presence of big beasts can influence unknown stock movements. And for small investors like us, it can be too high. Never run with the herd son. One of the reasons why I've cashed out now. It's irrational exuberance all over. Think about it. All analysts are predicting a max 1% economic growth. Europe is negative. USA is 1% tops. Just how does that justify 6-10% stock market rises? 

Be that as it may, second lesson is to be wary of investing in places where you aren't comfortable. I rarely invest in tech stocks. Far too nebulous an investment. Never invest in anything that you don't understand or are unable to explain to a 10 year old. 



Facebook, One Year Later: What Really Happened in the Biggest IPO Flop Ever - Khadeeja Safdar - The Atlantic

Continue to the TheAtlantic.com


After Facebook’s disastrous debut, the preferred clients of big banks walked away with huge profits. How? Public documents and interviews with dozens of investment bankers and research analysts reveal that the Street caught wind of something the public didn’t. The social network and the banks told half the story. Here is the other half.

Khadeeja Safdar May 20 2013, 9:43 AM ET

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Uma Swaminathan tuned the television set in the living room of her ranch style home in the suburbs of East Brunswick, N.J. to CNBC. It was 9:00 a.m. on May 18, 2012, a day the retired schoolteacher thought might make her rich. She logged onto her Vanguard brokerage account on her computer and placed an order for 5,000 shares of Facebook at $42 a share.

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