Anyone buying Facebook IPO?
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15-05-2012, 01:13 PM
Anyone buying Facebook IPO?
I've been thinking about it. I don't really know much about trading stock though. Does anyone think it's even remotely possible to lose money with FB?

“Whenever you find yourself on the side of the majority, it's time to pause and reflect.”

-Mark Twain
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15-05-2012, 03:36 PM
RE: Anyone buying Facebook IPO?
I'd worry more about how you are going to get into the IPO. At this point, all the initial shares are probably subscribed to. An IPO is very much a private party and not everyone is invited. A guy who isn't connected and in the position to get "friends and family" shares or is a big buyer of stocks or has some other connection isn't getting "in" on the IPO. Not happening.

You're only chance of buying Facebook stock is on the secondary market, in this case the Nasdaq market.

As for your question about is it possible to lose money with Facebook, it is possible to lose money with absolutely any stock. And, it is really possible to lose money on a stock you bought on the secondary markets (which is probably where 99.99% of all stock purchases are made).

The people fortunate enough to be in that IPO are probably going to make an absolute mint. That is not a guarantee but the odds are well in their favor. Everyone else, though, is taking a chance. This stock is going to balloon in price once it hits the open market, and you can bet it's going to seesaw up and down for a few weeks as people push it up and take their profits and get out. Hedge funds are going to go to town on this, as will depleted pension funds. I'm not, by any definition, a stock market guru and my opinion is no better (or worse) than any other opinion, or even throwing darts at a board to pick what to buy or what the right buy/sell price is, so take this for what it is worth: I think getting in on this in the first two months is a suckers game. If you can get it during one of the initial inevitable big sell offs and then dump it when it swings back up, I'd try to do that. But, people have lost fortunes trying to time the markets that way.

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15-05-2012, 03:36 PM
RE: Anyone buying Facebook IPO?
to be able to get it you need to have a balance of atleast 500,000 with the stocks broker

As all things Facebook will fall its just a matter of time but for the present i dont see it as a bad trade

If you can get ur hands on some stocks during the IPO though you should make alot of money

The prices per stock will be $38 i imagine ill go for a few hundred dollars after
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15-05-2012, 06:43 PM
RE: Anyone buying Facebook IPO?
You should listen to Batman. He's a fucking billionaire.

"I think of myself as an intelligent, sensitive human being with the soul of a clown which always forces me to blow it at the most important moments." -Jim Morrison
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15-05-2012, 07:55 PM
RE: Anyone buying Facebook IPO?
I invest in exchange traded funds 'cause I'm smart enough to know I ain't smart enough to invest in individual stocks. Wink

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15-05-2012, 11:47 PM
 
RE: Anyone buying Facebook IPO?
The one sure way to get the market to fall, I have discovered, is for me to get in it. With only a few thousand of my own cash, I'm sure I could cause a world-wide depression.
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16-05-2012, 12:04 AM
RE: Anyone buying Facebook IPO?
For a short time it is very possible that it will be a hype train. Longterm it will be difficult to tell because it will depend on some factors:

- Will it be bought out and ran differently
- Will the sole decisions of business be made to benefit the investors, or the business experience for the consumer? (Many businesses go this route, make it publicly available and then become obsessed with investor interest and forget about the consumer experience)
- Will it be a niche market or will we see something in the future that will overcome it?

Here's the thing... social networking has evolved at a rapid rate. New things come up and old things get slapped down, new things get slapped down and some never even have a chance at being good or competing.

But mark my words, facebook will either need to adapt as social demand and social networking changes, or they will eventually see something else be the "next facebook" in which case the stocks will not forever be high.

The thing is that right now it's a hype train. People see the success of facebook, they see how big it has become and they put it right next to something like google. The thing is though that google is not a social networking company, yes, they have Google Plus. Yes, they have tied in with things like youtube. BUT you must remember that google has founded it's success in finding roots in various markets to be the backbone and a provider, as well as various things online as well. Google is massive on a scale that is difficult to comprehend.

Facebook has found an exponential growth in the growing demand of human social interaction. Much like google it will need to find roots in many places to continue that growth or face fizzling out in a sharp pop and be the next burst bubble of tomorrow.

That is the market, that is the difference between a company that is longterm and a company that simply made it big and is talked about tomorrow in past tense.

So how long do we ride the hype train? Do we get greedy?

We can't predict the future on the market, but we can make pretty good decisions that just like science are based off of observation, numbers, predictable and repetitive results and people doing what they say they will do.

Years ago I purchased stock in AAPL (Apple). This product was coming out called the IPhone. I remember seeing the potential in the product and realizing it would be something pretty awesome. There was a lot of naysayers, there were a lot of people who also were excited for it too. But Apple saw a demand, they made it appealing and they found a way to make it successful that made sense. They delivered. At that time the stock was $90ish a share and I recall cashing out close to $200 a share.

So ask yourself: Are you investing based off of the hype or have you found something that you see them delivering in the near future? Do you see this as something that will be a longterm or short term investment? The name of the game is to end with more than what you started. Don't get greedy, don't be stupid, be rational, logical and don't let the emotion take over it and investing can be a lot easier than you think.

I can't promise that based off of things like that in that you'll become 100% successful. I've taken losses and I've made gains. Thus far staying in the green. But there is also various factors of market manipulation, false reporting and many things in OTHER sectors of the market that can directly affect your investment. Ask yourself what would those potential factors be?

Do your research. Figure out a game plan. Figure how much you are willing to put aside to do it and potentially lose (because let's face it, bad things can happen) and if you can with a clear mind put it down on the table and stand by it, you've started your investment.

For the bad side of the market and to see what can directly affect companies in good and bad ways.... go back and look through what caused the rise and drops and even spring backs in these companies over the last 5 to 6 years. If you can explain them to yourself and investigate and understand, you'll be on your way to understanding investing a bit better.

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18-05-2012, 11:36 AM
RE: Anyone buying Facebook IPO?
Seems the facebook IPO is kicking off not with a bang, but a whimper.

That's a shame.

Shackle their minds when they're bent on the cross
When ignorance reigns, life is lost
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18-05-2012, 12:29 PM
RE: Anyone buying Facebook IPO?
To echo what's been said, IPOs get sold to insiders without calling it insider trading. I could not buy an IPO with my Scott Trade account. However, what happens is the people who were suddenly made millionaires over night with their stock options will now sell them openly on the exchange, raising the price for me to buy them while they walk away with pure profit. Because they are selling so many shares at once, the price and demand goes way up. But once the hype is over, the stock will fall and settle into it's natural value, leaving me holding a huge loss because I was suckered in by the hype and bought too high and took a hit when I bailed. Fortunately for me, I'm tapped out and don't trade anymore because otherwise I might have been suckered in by the Facebook Hype even though I know better! Their is a weird gambler's psychology when it comes to trading. Be like Girly and give your money to someone who knows what they're doing!

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18-05-2012, 12:31 PM
RE: Anyone buying Facebook IPO?
(18-05-2012 12:29 PM)Erxomai Wrote:  To echo what's been said, IPOs get sold to insiders without calling it insider trading. I could not buy an IPO with my Scott Trade account. However, what happens is the people who were suddenly made millionaires over night with their stock options will now sell them openly on the exchange, raising the price for me to buy them while they walk away with pure profit. Because they are selling so many shares at once, the price and demand goes way up. But once the hype is over, the stock will fall and settle into it's natural value, leaving me holding a huge loss because I was suckered in by the hype and bought too high and took a hit when I bailed. Fortunately for me, I'm tapped out and don't trade anymore because otherwise I might have been suckered in by the Facebook Hype even though I know better! Their is a weird gambler's psychology when it comes to trading. Be like Girly and give your money to someone who knows what they're doing!
The shares are holding so far at 38 dollars. So as long as someone is willing to sell there are IPO valued shares available.

“Whenever you find yourself on the side of the majority, it's time to pause and reflect.”

-Mark Twain
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