Jump on the Facebook IPO?

[Bubba1235]

Got in a conversation with half a dozen people talking about how they are going to jump on the upcoming Facebook IPO. Being the conservative (financially conservative) type all I could do was shake my head and say not a chance for me. When I buy a stock I want there to be actual assets worth something.

But then, I'm also of the opinion Facebook is another fad that will fade when something new comes along like so many social sites before it. Besides, I'm of the opinion that unless you can play large you end up being the one holding the bag on IPO's.

 

[wagnerz]

Re: Jump on the Facebook IPO?

I am in the same boat as you. No pun intended. I think it's going to be a fad, and at any time, Facebook could go from 100 billion dollars in value to 0. But, at the same time, in the short term there could be some good profit to be made. I don't like to invest when my personal feelings get involved because it always bites me in the butt, so I am staying clear of Facebook. I wouldn't even try and short-sell it.

 

[Bigprairie1]

Re: Jump on the Facebook IPO?

Nope....not into the facebook thing at all and I agree about the true value assessment you mentioned Bubba. As well, I think the first year or two will be verrrrrry difficult for young Zuckerberg in dealing with investors who have the ability and mandate to question him and have a voice in steering the company choices. I think this is going to make for a very rocky couple of years and he may end up leaving once it fully registers that this is no longer his private sandbox.
My two bits.
BP

 

[GA_Boater]

Re: Jump on the Facebook IPO?

Call your broker and see if you can even buy a share. I saw that it is fully subscribed. If you could get in I think it's quick rollover. FB has some problems. One of them is retailers are starting to drop out of the FB store business because there aren't any sales. Add the privacy concerns and ad revenue is where they make their money now. They have no "product". Groupon comes to mind as being somewhat similar and it is currently trading at about half the IPO price. Of course you know I'm a regular guest on CNBC for my tradiing knowledge.

 

[Fly Rod]

Re: Jump on the Facebook IPO?

Most people that make money on IPO's is the person that buys before going public, they pay a few dollars less a couple days before it goes public and then the day it goes public price goes up and the early birds sell, make their money, leaving the average joe scracthing his/her head.

 

[JB]

Re: Jump on the Facebook IPO?

Dot Com II

 

[MTboatguy]

Re: Jump on the Facebook IPO?

With the some of the articles I have read and brokers I have talked to, no, I will not be investing, they are way over valuing the company for the initial offering. They just filed notice they have upped the price again for the offering, many feel it is over valued by about 40% right now. Besides, all of the shares are subscribed right now.

 

[bruceb58]

Re: Jump on the Facebook IPO?

Got in a conversation with half a dozen people talking about how they are going to jump on the upcoming Facebook IPO. Being the conservative (financially conservative) type all I could do was shake my head and say not a chance for me. When I buy a stock I want there to be actual assets worth something.

Besides, I'm of the opinion that unless you can play large you end up being the one holding the bag on IPO's.

So how's that GM stock you bought after the recent IPO doing for ya Bubba?

 

[Summer Fun]

Re: Jump on the Facebook IPO?

If you buy into FB :facepalm:, I'll be laughing at you when you lose your money.

 

[bruceb58]

Re: Jump on the Facebook IPO?

It appears GM agrees, Facebook is not woirth it.

I guess that means you learned your lesson on the GM IPO you bought?

 

[bruceb58]

Re: Jump on the Facebook IPO?

Treadng water... more or less. But I have faith.

So apparently you have changed your mind on IPOs since that debacle huh? If I recall we were all wonderring why you were doing it.

 

[sam60]

Re: Jump on the Facebook IPO?

Hey Bubba,....Buffet's with you!!!

http://content.usatoday.com/communi.../warren-buffet-buys-10-million-shares-of-gm/1

 

[bruceb58]

Re: Jump on the Facebook IPO?

No, I still believe IPO's (or pre-IPO's) can be very rewarding financially but like anything to do with stock there is home work that must be done.

Huh...thought you were saying something different in your first post.

Besides, I'm of the opinion that unless you can play large you end up being the one holding the bag on IPO's.

 

[sam60]

Re: Jump on the Facebook IPO?

Hey Bubba,....Buffet's with you!!!

http://content.usatoday.com/communi.../warren-buffet-buys-10-million-shares-of-gm/1

Looks like I jumped into the middle of a friendly feud here,.....I'm gone.

 

[Bigprairie1]

Re: Jump on the Facebook IPO?

Its kind of entertaining to watch what is happening with this company and stock....now down to $32-ish. Anyone figured out how this company or website has the ability to make money with the demographic that uses it? Apparently a lot of businesses are thinking about this as well.
....hmmm.
BP

 

[korygrandy]

Re: Jump on the Facebook IPO?

Overpriced, as we all knew. Peter Theil is laughing all the way to the bank though.

When the average Joe is buying stock in facebook, and it's the first stock they've ever owned...yeah its not an asset pool for me. I kid you not, I've ran into multiple people who bought with this same theory in mind, "it's a piece of history". Well crap, so is the state's lottery system and that will be around long after Facebook, but that's a one way money pool I'm *willing to put a few bucks into LOL.

Zuckerberg just got married on Friday...he's ready for his new beginning and you should be too. Didn't y'all get the memo, the party ended Friday. All the early investors reaped the rewards, and you needed a minimum of 2million when there was even a glimmer of hope at making money...oh and you needed an in!

 

[bruceb58]

Re: Jump on the Facebook IPO?

Monetizing the internet has always been problematic at best

Guess you haven't heard of companies called Google, Amazon or Ebay?

Its not like Facebook isn't making a profit, its just how much profit they will be making and how to value the company based on that profit.

Basically, the hype surrounding the IPO pushed the initial price way over what it should be selling at. Its going to reach its proper price eventually.

 

[Bigprairie1]

Re: Jump on the Facebook IPO?

Guess you haven't heard of companies called Google, Amazon or Ebay?

Its not like Facebook isn't making a profit, its just how much profit they will be making and how to value the company based on that profit.

Amazon and Ebay are websites rooted and founded on a basic consumer goods transaction so it is extremely easy to see how they can be resolved into a profit centre either as a percentage of hourly/daily transactions or otherwise.
Facebook is a social communication site and is not rooted (at all) in a primary financial transaction activity. Thus it is much, much harder to resolve how to extract profit from it.....particularly profit that equates to a $50-100 billion dollar evaluation.
Clearly the website is worth something....but how much has yet to be determined and how it will pace its earnings with its valuation has yet to be determined as well.....simple eh?
My two bits.
BP

 

[bruceb58]

Re: Jump on the Facebook IPO?

Yes Bruce, I've heard of them, three out of millons of sites. That is not a great percentage when measuring success.

I only gave you 3 examples...I take it you want more? Really, you don't know many companies that monetize the internet? Do you think iBoats isn't monetizing the internet? How about Netflix? How about Apple? Hear of the iTunes store before?

I do agree with you that Facebook's profits don't justify the current stock price. Someday they may.

By the way, Facebook is a client of my company. There is a lot going on there more than just a social media site. It has the possibility of being a major e-commerce site in the future.

 

[tpenfield]

Re: Jump on the Facebook IPO?

The stock has gone down 3 days in a row on heavy volume since its debut. so the Wall street insiders that pre-bought the shares are making their money. Best thing is too stay out of the way for now. Some day it may arrive at a price worth buying. . .