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To: Jack Hydrazine
I heard from one of the stock trading talking heads that a number of investors were shorting the stock on the day of the IPO. I think if I was to put money into its stock I would short it myself.

Not likely, but the shorting will commence this week, I guarantee it.

On the first day of trading, there is no stock available for loan in order to take a short position, as the trades have not yet been settled to establish the holder of record. FB is truly a dog with fleas from a potential earnings perspective. I anticipate it trading in the $10 range in short order, but $2 - $4 is what it is really worth.

51 posted on 05/20/2012 4:38:33 AM PDT by RobertClark (Be prepared, be polite, be professional and have a plan to kill everyone you meet.)
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To: RobertClark; jiggyboy; Jack Hydrazine
I heard from one of the stock trading talking heads that a number of investors were shorting the stock on the day of the IPO. I think if I was to put money into its stock I would short it myself.

Not likely, but the shorting will commence this week, I guarantee it.


Looks like it's coming out that the lead underwriter Morgan Stanley was selling short heavily above the IPO price (which apparently could be legit under SEC rules for IPOs) and will be able to cover some or all of those shorts by purchasing according to an overallotment (again, apparently legit) at the IPO price of $38 if the price goes higher. If it goes lower, of course, they can buy at market and close out the short sales profitably.

Pretty smelly stock if the lead underwriter is shorting it.

I guess it would be fine if they can keep buying to prop up the price for a few months, but IMHO, it does not quite look that they can.

This is one to avoid, IMHO, and simply stock up on popcorn.
56 posted on 05/20/2012 9:56:18 AM PDT by PieterCasparzen (We have to fix things ourselves.)
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