Posted on 05/22/2012 11:59:30 PM PDT by PieterCasparzen
They got in. And now they're cashing in.
Goldman Sachs was an early investor in Facebook. And now with the technology company ready to go public, Goldman will be among the first to cash out, according to Bloomberg, ready to dump $1 billion in stock, or about half of the Wall Street investment bank's shares.
The bank and its accompanying funds will sell 28.7 million of the 65.9 million shares they own -- more than twice the amount initially planned -- Facebook said yesterday in a filing.
Goldman did so in a way that left both American shareholders and regulators out of the deal, Bloomberg reported: the company created a "special purpose vehicle" that allowed it to avoid U.S. Securities and Exchange Commission reporting requirements.
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(Excerpt) Read more at nbcbayarea.com ...
when it gets down to about $10@ share it will be a buy.
I would agree. It was vastly overpriced to start with. Years ago...I was an employee of SAIC, which was going finally public with an IPO. A lot of us had internal stock, and felt the $16 target was awful low. Once it started selling...we figured in twelve months that it would hit $30 a share. A year into this episode....it was around $18 a share. It’s been almost five years since that big event, and the stock is today trading at $10 a share.
The truth is that you just can’t tell about this stock business.
Well, it’s hard to see Facebook as anything other than a fad. There really isn’t much going on except constant reminders of other people’s activities which, honestly, aren’t all that interesting. Some businesses use Facebook to keep subscribed customers informed of their promotions, like a newsletter, but I’m not sure that Facebook is any more effective than similar business efforts through other media. This whole Facebook IPO was way overhyped.
....and 50-50 that Zuck gets convicted of insider trading once the smoke clears.
I agree that it is an obvious fad. 20 years from now, FB will be in the same discussions with Pet Rocks. On another thread I mentioned that this might be the actual first stock that I short. Wish I had done it at $45/share :)
“...I was an employee of SAIC, which was going finally public with an IPO”
HCA stock has never reached it’s IPO either, although, I imagine, the Frists came out OK.
Believe me, there are experts who know the value of a company down to near the last paper clip. There's a bottom line liquidity, and those are the guys in control of the switches know it.
It is not uncommon for a stock to come out high then drop off. Given all the pre release hype, this was a good bet that their stock would come out of the gate, then slide down.
And goldman is supposed to be the smart guys?
Don’t a lot of goldman wizards end up at the highest levels of govt and finance?
Might be a case of promoting incompetence up and out.
considering artical is 5/17, makes me wonder if gs was privy to the insider stuff, to bad for the little shepple.
When the bubbies move in, the kids move on. Facebook is a great place for grandparents to follow their young grandchildren. Thelma and aunt Zetuni aren’t clicking the ads. Is anybody?
Zuckerberg sold 3.1 million shares yesterday as did his deputy to the tune of 1.6 million shares. Are people really that stupid to have jumped on this bandwagon? There is no “free” money out there only manufactured money and the ability to hype an expectation.
My advice: Don’t buy individual stocks unless it is blue chip and pays a nice dividend.
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