Facebook shares fall again as flotation concerns emerge - GoFuckYourself.com

DVTimes · 05-23-2012, 06:07 AM

Facebook's flotation has run into more controversy amid reports of concerns about the way advisers disclosed information to investors.

As Facebook shares fell another 9% on Tuesday, regulators said they may review the disclosure process to see if some investors got favourable access.

The SEC and regulatory body FINRA both said they would look into the matter.

Morgan Stanley, lead underwriter on the flotation, said it was "in compliance with all applicable regulations".

Reuters and the Wall Street Journal reported that Facebook's advisers may have revised their financial forecasts for the social networking company, but that only selected investors were told.

Mary Schapiro, chairman of the Securities and Exchange Commission, said "there are issues that we need to look at".

Richard Ketchum, chief executive of the Financial Industry Regulatory Authority (FINRA), said there were "matters of regulatory concern".

But in a statement, Morgan Stanley spokesman, Pen Pendleton, said the bank had "followed the same procedures for the Facebook offering that it follows for all initial public offerings".

Also on Tuesday, a private investor issued a writ against the Nasdaq stock exchange over technical problems on Friday that disrupted Facebook's first trading day.

Phillip Goldberg, a Maryland resident, is seeking class-action status on behalf of all investors who say they lost money because of the technical problems.

Facebook's market debut was delayed by about half an hour, and orders to buy or sell shares were further disrupted. Mr Goldberg has filed a writ in the southern district court of New York.

Nasdaq chief executive Robert Greifeld has said that "clearly we had mistakes in the Facebook listing".

It has all taken the shine off one of the most anticipated flotations in history.

Facebook shares, launched at $38 each on Friday, fell 11% on Monday and a further 9% on Tuesday. The shares are now worth $31 each.

It is a remarkable turnaround from recent weeks, when the social network's share sale was over-subscribed and the eight-year-old firm was valued at $104bn (£66bn).

'Sober second thoughts'

Much of the blame for the fall in share price is being pinned on lead underwriters Morgan Stanley and the Nasdaq exchange itself, with many commentators saying that the sale was over-priced.

"There must have been some sober second thoughts about this," said Brian Wieser, an analyst at Pivotal Research.

Mr Wieser thinks a fair price for such a young company without a proven business model is about $30.

But some analysts say the fall is of little consequence in the early days.

"Whether [Facebook] is worth $95bn or $100bn, it's immaterial," Jeremy Liew of investment company Lightspeed Venture Partners told Reuters.

The social networking site has transformed the way in which hundreds of millions of people around the world communicate. It is also transforming the way companies advertise to existing and potential customers.

But Facebook's 900 million users helped the company generate just $1bn in profit last year, and there are concerns about its ability to grow profits in the future.

http://www.bbc.co.uk/news/business-18163687

My thought:

Lots of greedy people who were worned it was a bad invesment, but too greedy to listen will loose lots of cash.

DVTimes · 05-23-2012, 06:13 AM

I still think that if the bulk of the $1bn profits (still seems more than I would have thought) is through advertimest, one wonders if this will decrease if firms find adverts have poor results.

I suspect many will try adverts on facebook just to see if they get results or not.

So far GA motors have said adverts do nothing for them. If otherr large firms pull out, I am sure small firms willo not bother to try.

Then surly facebook is doomed not to make money.

DamianJ · 05-23-2012, 06:14 AM

Oh do fuck off and suck your dead dog's cock you pointless dickstain.

Paul Markham · 05-23-2012, 06:19 AM

Quote:

Originally Posted by DamianJ

Oh do fuck off and suck your dead dog's cock you pointless dickstain.

Damian you need some help.

DVTimes · 05-23-2012, 06:28 AM

Quote:

Originally Posted by Paul Markham

Damian you need some help.

I think he [Damian] should be baned for his constent abuse towards me. I thopught harrsment was a banning thing? Also who is he talking about beastiality on a webmaster forum. If I told somone to have sex with a child I would be baned. Is beastiality allowed on gfy?

Shocking.

Its why i have him on ignore.

I dread to think what other illigall things he recomends people do.

I wish no contact with somone who has a beastiality fetish.

TheLegacy · 05-23-2012, 06:31 AM

Facebook was over rated and from the looks of it those who invest didn't know much about it (as no one really did). They tried - failed - but they are still strong

05-23-2012, 06:07 AM	#1
DVTimes xxx Industry Role: Join Date: Jun 2003 Location: UK Posts: 31,544	Facebook shares fall again as flotation concerns emerge Facebook's flotation has run into more controversy amid reports of concerns about the way advisers disclosed information to investors. As Facebook shares fell another 9% on Tuesday, regulators said they may review the disclosure process to see if some investors got favourable access. The SEC and regulatory body FINRA both said they would look into the matter. Morgan Stanley, lead underwriter on the flotation, said it was "in compliance with all applicable regulations". Reuters and the Wall Street Journal reported that Facebook's advisers may have revised their financial forecasts for the social networking company, but that only selected investors were told. Mary Schapiro, chairman of the Securities and Exchange Commission, said "there are issues that we need to look at". Richard Ketchum, chief executive of the Financial Industry Regulatory Authority (FINRA), said there were "matters of regulatory concern". But in a statement, Morgan Stanley spokesman, Pen Pendleton, said the bank had "followed the same procedures for the Facebook offering that it follows for all initial public offerings". Also on Tuesday, a private investor issued a writ against the Nasdaq stock exchange over technical problems on Friday that disrupted Facebook's first trading day. Phillip Goldberg, a Maryland resident, is seeking class-action status on behalf of all investors who say they lost money because of the technical problems. Facebook's market debut was delayed by about half an hour, and orders to buy or sell shares were further disrupted. Mr Goldberg has filed a writ in the southern district court of New York. Nasdaq chief executive Robert Greifeld has said that "clearly we had mistakes in the Facebook listing". It has all taken the shine off one of the most anticipated flotations in history. Facebook shares, launched at $38 each on Friday, fell 11% on Monday and a further 9% on Tuesday. The shares are now worth $31 each. It is a remarkable turnaround from recent weeks, when the social network's share sale was over-subscribed and the eight-year-old firm was valued at $104bn (£66bn). 'Sober second thoughts' Much of the blame for the fall in share price is being pinned on lead underwriters Morgan Stanley and the Nasdaq exchange itself, with many commentators saying that the sale was over-priced. "There must have been some sober second thoughts about this," said Brian Wieser, an analyst at Pivotal Research. Mr Wieser thinks a fair price for such a young company without a proven business model is about $30. But some analysts say the fall is of little consequence in the early days. "Whether [Facebook] is worth $95bn or $100bn, it's immaterial," Jeremy Liew of investment company Lightspeed Venture Partners told Reuters. The social networking site has transformed the way in which hundreds of millions of people around the world communicate. It is also transforming the way companies advertise to existing and potential customers. But Facebook's 900 million users helped the company generate just $1bn in profit last year, and there are concerns about its ability to grow profits in the future. http://www.bbc.co.uk/news/business-18163687 My thought: Lots of greedy people who were worned it was a bad invesment, but too greedy to listen will loose lots of cash. __________________ The Affiliate Program

05-23-2012, 06:13 AM	#2
DVTimes xxx Industry Role: Join Date: Jun 2003 Location: UK Posts: 31,544	I still think that if the bulk of the $1bn profits (still seems more than I would have thought) is through advertimest, one wonders if this will decrease if firms find adverts have poor results. I suspect many will try adverts on facebook just to see if they get results or not. So far GA motors have said adverts do nothing for them. If otherr large firms pull out, I am sure small firms willo not bother to try. Then surly facebook is doomed not to make money. __________________ The Affiliate Program

05-23-2012, 06:31 AM	#6
TheLegacy SEO Connoisseur Industry Role: Join Date: Apr 2003 Location: Brantford, Ontario Posts: 16,957	Facebook was over rated and from the looks of it those who invest didn't know much about it (as no one really did). They tried - failed - but they are still strong __________________ SEO Connoisseur Microsoft Teams: Robert Warren SEO Telegram: @TheLegacy54 RobertWarrenSEO.com

05-23-2012, 06:14 AM	#3
DamianJ Too lazy to set a custom title Industry Role: Join Date: Jul 2006 Location: A magical land Posts: 15,808	Oh do fuck off and suck your dead dog's cock you pointless dickstain.