Facebook IPO on IGINDEX

[magnus911]

Has anyone read anything about this? I'm thinking it would be an interesting thing to short, but probably not before the IPO.

Thoughts on the price?

[marky1]

Be careful. Look what happened to Google after their IPO.

[HowMuchLonger]

I expect it to follow the pattern of Linkedin. Big big jump, then big big drop.

IG was at 120 a while ago, so it is relatively low at the moment.

[magnus911]

Agreed - if they're seeking a launch value of 100$ then you could be stopped out if trying to short too soon. I'm just thinking that I want to be looking at shorting it if there's mass hysteria driven gains early on. It has a P/E of over 100!

[HowMuchLonger]

My view is that fundamentals will be overlooked for the first 6-12 months. A short will be good because most of the employee stock will be cashed in very quickly.

[magnus911]

Well, possibly, but employee stock will be the only stock which might have constraints on when it can be sold.

[Kudos]

marky1 said:

Be careful. Look what happened to Google after their IPO.

What? It went up significantly?

[marky1]

Kudos said:

What? It went up significantly?

From memory floated at $80, was $200 within a few months. Pretty sure IPO day was the low.

[marky1]

jj12345 said:

I would avoid FaceBook like the plague - in my opinion it is high risk and the growth potential is limited.

This is coming from someone who invested in Amazon and Google before the IPO's...so I like to think my finger is on the pulse

How did you invest pre IPO out of interest?

[marky1]

Ok, yeah I know about the secondary market, was just wondering how you got in. Cheers