Posted on 05/22/2012 4:58:37 PM PDT by jimbo123
Analysts for at least two of Facebook Inc.'s lead underwriters revised their financial forecasts for the company while it was holding initial-public-offering roadshow meetings with investors, according to people close to the deal.
The revised figures were passed along only to some investors, according to Scott Sweet, an adviser with IPO Boutique who worked with hedge funds and others that were buying into the deal. That angered some who didn't get the updated figures, he said.
Morgan Stanley and Goldman Sachs Group Inc. updated their financial projections for the social network after the company added warnings to its IPO prospectus about how its user base is increasing more rapidly than the number of ads it delivers, according to the people close to the deal.
(Excerpt) Read more at online.wsj.com ...
He'll cite it as a reason to come down hard on "The rich" and cap incomes or further regulate the "free market" so that only rich liberals can make money.
He's trying... this may be the excuse he's looking for to make further demands.
Facebook is giving the Obama reelection team a massive database of anti-Obama voters and their posts under the guise of a historical archive. So Obama will not lay a glove on Facebook, but he’ll go after all of the underwriters except for Goldman Sachs.
Actually they should be sued for their scan but then the lawyers will get their money...the people who were scammed will still be out.
Good point.
These analysts with their guesses as to future earnings are usually wrong.
If some brokerage analyst tells you what Facebook is going to earn over the next five years, you’d be better off throwing a dart at a dartboard (or at the brokerage analyst).
The big investors all have people who are paid to do their homework before investing, but they don’t and just take the word of these “analysts” and their forecasts.
With the mortgage securities in the financial meltdown, the investors bought a bunch of crap, did not do their own homework but took the word of the analysts that these were good bonds.
When the bottom fell out they expected taxpayers to bail them out.
Facebook is pure poison. It destroys privacy and gives both government and corporations an easy way to spy on people. It promotes false values, too, especially narcissism.
If this is what the future of our economy is, we shall soon be ruled by countries like China and India, Third World though they be.
I hope that Facebook soon suffers a great fall, via the market and/or in other ways. That might provide a much-needed wake-up call to our whole country!!!!
Facebook is overvalued even if you use the high end of future earnings estimates.
Apple is trading at about 10X 2013 estimated EPS.
Google is trading at about 12X 2013 estimated EPS.
Facebook is trading at about 40X-100X 2013 earnings.
Link:
http://www.businessinsider.com/what-is-facebook-worth-2012-5
Anyone who didn’t see the FB scam deserved to be taken, but I still feel sorry for first time buyers of stock.
Does this very serious charge have true merit? The seething lynch mob wants blood. Disappionted FB IPO buyers expected easy quick profits. Now they need a scape goat to blame . Doubt the bankers blame game with out factual evidence.
Pump ‘n Dump.
Pump ‘n Dump.
Pump ‘n Dump.
Pump ‘n Dump.
Pump ‘n Dump.
etc., etc., etc.
You’d have better return buying Kodak (EKDKQ) which just dropped to .174 cents per share! Almost no where to go but up. lol....
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