Facebook a legalized ponzi scheme

Burroughs · May 17, 2012

facecrack is a legalized ponzi scheme

nothing less

facebook's fundamentals are ****e...you are a total schmuck if you jump for this..this stock will soar at first, then plummet when the big players take their profit, taking small investors with it...facebook will be a ghost town in 3 years

consider yourself warned

http://finance.yahoo.com/blogs/brea...ezes-main-street-investors-ipo-150848272.html

HoneyHitter · May 17, 2012

I agree that it's being hyped up way out of proportion. But calling it a ponzi scheme reeks of ignorance.

synergy1 · May 17, 2012

I would never get in on an IPO, let alone another dot com esque frenzy based on hype and no fundamentals. Traditionally, IPOs jump than lose anywhere from 50 to 70% of their initial equity value. As was stated, the guys who are in first will let the stock price go up, than sell once everyone else starts to buy in.

Burroughs · May 17, 2012

synergy1 said:
As was stated, the guys who are in first will let the stock price go up, than sell once everyone else starts to buy in.

aka a ponzi scheme

n00bPimp · May 17, 2012

Facebook is the new Myspace, and we all know how that ended.

synergy1 · May 18, 2012

Burroughs said:
aka a ponzi scheme

I am aware that this is splitting hair, but I thought this was closer to a 'pump and dump'. A ponzi scheme is perpetuated by finding new investors to pay out the old ones. to FB's credit, they have made some money in the past. Just not enough to justify whatever the closing cost of a share is...

backbreaker · May 18, 2012

the only reason this is so hyped is becuase the held out so long. the whole point is to buy low and sell high. right now it's through the roof.

they are validated at something like 90 billion dollar company. an internet site that does not produce anyhting and you have people sooping this **** up like hotcakes. apple was a great buy when steve jobs re took over. buying facebook now just does not make any sense from an investment perspective. you aren't even really investing you don't invest in a company that is worth 100 billion dollars. what can they possibly do to get you a return on your investment? their ad system is ****.

Who Dares Win · May 18, 2012

So you think they used social engineers and psychologist to create that ego feeding/attention wh0ring monster with the final purpose of getting rich through the selling of his shares?

Im just asking not accusing you of anything, I find it hard not to believe but to realize as plan.

Bible_Belt · May 18, 2012

IPOs have always been a con game on the public. Almost every one is a "hot issue" which means a guaranteed profit for the insiders who are allowed to purchase before the general public. Those insiders are typically the best customers (paid the most in commissions) of the issuing brokers.

What always made me mad was that IPOs are just about impossible to short sell for 90 days or so after the opening. So even when you know that the hunk of crap stock is going down, there's no way to make money off its tumble.

Burroughs · May 18, 2012

We spend so much pretend money (none of it is backed by anything substantial) on virtual products that do not actually have substance in the real world.

I can't wait to see their share price after the 1st quarter when investors realize the company will NEVER MAKE $7-10 BILLION A YEAR to warrant its value. They already are at their peak....

This is exactly whats wrong with the US economy. We have children selling shares of silly websites while the Chinese manufacture durable goods

Bible_Belt · May 21, 2012

The dumb asses opened FB at 42 instead of the 38 they had announced beforehand, then of course it plummets right back to 38 the same day. Current price is $33.50.

I have read that some broker-dealers will have shares available to short as early as the end of this week. FB options are scheduled to start trading next week on the CBOE, and at that time, anyone may simply buy a put option to profit from facebook's demise. I can only imagine that the pricing of those puts will be at a premium, because demand will be so high.

Julius_Seizeher · May 21, 2012

I've also heard an analyst say that in the coming months they intend to issue shares up to a final OS of two billion shares. Two billion outstanding shares of a dubious social media website! lol

No thanks, I'm not even going to mess with shorting FB, I'm staying the hell away from it altogether.

Leporello · May 22, 2012

Ummm...that's every stock. That's the stock market. It goes around and around and you hope you're not the poor idiot holding the bag the moment the price starts to tank.

Burroughs · May 22, 2012

"selective dissemination"....

This is a criminal act. Institutional investors cannot have special access...it is the very definition of insider trading...and cutting estimates in the middle of the roadshow and only hedge funds knew about it. wow

http://www.businessinsider.com/facebook-bankers-earnings-forecasts-2012-5

http://www.reuters.com/assets/print?aid=USBRE84L06920120522

Alle_Gory · May 22, 2012

From what I read, an IPO isn't shortable until after 90 days?

That's a long time to wait. I want to short the Titanic now.

n00bPimp said:
Facebook is the new Myspace, and we all know how that ended.

Some old idiot will overvalue it and then buy it for way over what it's worth? That sounds great.

Bible_Belt · May 22, 2012

From what I read, an IPO isn't shortable until after 90 days?

That is at the discretion of your broker-dealer. There must be margined shares available for you to borrow, in order to sell them without having them. My BD was Penson financial, and they made me wait 90 days. Other BDs like Interactive Brokers usually had IPO shares to short much faster than 90 days.

Burroughs · May 22, 2012

Alle_Gory said:
From what I read, an IPO isn't shortable until after 90 days?

That's a long time to wait. I want to short the Titanic now.

Some old idiot will overvalue it and then buy it for way over what it's worth? That sounds great.

But institutional investors with early access CAN short

and they are

some shorted on friday...for reasons that have only just become clear (selective dissemination)

Alle_Gory · May 22, 2012

Burroughs said:
But institutional investors with early access CAN short

and they are

FOR ****S SAKE. This is ****ing ridiculous.

Bible_Belt · May 23, 2012

Facebook's Overnight Millionaires Begin Lavish Spending Spree:

http://www.foxbusiness.com/technolo...-millionaires-start-luxurious-spending-spree/

Burroughs · May 23, 2012

Bible_Belt said:
Facebook's Overnight Millionaires Begin Lavish Spending Spree:

http://www.foxbusiness.com/technolo...-millionaires-start-luxurious-spending-spree/

Zuck and other principles should make sure to stash a bit of cash for the upcoming lawsuit....they might have a very big payoff to write....this is going to get very interesting

http://finance.yahoo.com/news/facebook-zuckerberg-banks-sued-over-130237689.html

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Facebook a legalized ponzi scheme

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