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Title: Several brokerages stop taking Facebook IPO orders
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URL Source: http://www.newsdaily.com/stories/br ... 1-us-facebook-ipo-order-close/
Published: May 17, 2012
Author: Jessica Toonkel
Post Date: 2012-05-17 01:51:35 by Tatarewicz
Keywords: None
Views: 113
Comments: 8
NEW YORK, May 16, 2012 (Reuters) — NEW YORK, May 16 (Reuters) - TD Ameritrade and Fidelity's brokerage arm both stopped accepting orders of Facebook shares as of Tuesday evening, according to representatives. The Facebook profile of founder Mark Zuckerberg on a mobile phone is seen in this photo illustration taken in Lavigny May 16, 2012. Facebook Inc increased the size of its initial public offering by almost 25 percent, and could raise as much as $16 billion as strong investor demand for a share of the No.1 social network trumps debate about its long-term potential to make money. Facebook, founded eight years ago by Mark Zuckerberg in a Harvard dorm room, said on Wednesday it will add about 84 million shares to its IPO, floating about 421 million shares in an offering expected to be priced on Thursday. REUTERS/Valentin Flauraud Ads by Google Advertise here Lowest cost wind power New technology recently introduced OTCBB stock ticker MMMW www.massmegawatts.com Top 12 Stocks to Buy Now Panel of nation's leading analysts just announced their favorite picks www.StreetAuthority.com 5 Stocks to Buy in May Buy them, never sell them, and profit all year long... www.InvestingAnswers.com The Death of Wal-Mart New Motley Fool Report. Companies Poised to Profit from this Change. Fool.com/Canada Morgan Stanley & Co did the same, according to three advisers at the firm who declined to be named because they are not permitted to speak to the press. E*Trade Financial also stopped accepting orders Tuesday evening, according to a client alert sent out Tuesday. Wells Fargo & Co's brokerage arm, Wells Fargo Advisors, was stopping accepting new orders at 4:00 p.m. EDT Wednesday, according to two advisers at the firm. A Morgan Stanley spokesman and a Wells Fargo spokeswoman declined to comment. On Monday, Morgan Stanley told its advisers that it would cap the number of Facebook shares for each retail client to 500, according to four people familiar with the situation. (Reporting by Jessica Toonkel; Editing by Gary Hill; Additional reporting by Jennifer Cummings, John McCrank, Joseph Giannone and Lauren Young) Poster Comment: Sounds like even the increased offering is oversubscribed. Seems to be lots o Bernanke dollars around.
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#1. To: All (#0)
Back in the boom days of the dot-com bubble in the late 1990s, every bar and restaurant you went into ran CNBC all the time. Everyone was talking about how much they made in Yahoo, AOL, and Amazon. Amazon is the only survivor. You might be surprised to learn that Amazon's P/E ratio right now is 189! But I'd imagine you'd take a 1,600% gain over the last decade. amzn may 15 Today the local pubs and eateries run ESPN. People talk about the mighty Orioles of Baltimore. They also talk about Facebook: “Saw your thing on Facebook yesterday,” or “Nice pic on Facebook.” Or how about the ubiquitous “I don't do Facebook.” It's the new “I don't watch TV” for the too-cool-for-school set. I hear these types of conversations almost every day. All these people who are on Facebook, almost 1 billion folks (or 15% of the entire human population) know and understand it... at least, they think they do. And they will buy it — just like people who eat at Chipotle (CMG) bought that stock (P/E 55.82). Advertisement Texas Man Collects $23,220 "Rent" Check Every Month A 66-year-old Texas man cashes a $23,220 "rent" check every month. The best part is the tenant is Wal-Mart... which means these checks can be expected to keep coming. Now you too can use this man's secret for receiving monthly "rent" checks from Wal-Mart. Just click here. Don't Buy It... Yet That said, you won't be able to buy it at the expected offer price of $34 to $38 a share. If this IPO follows similar ones, it will be a tough buy for the first six months... It will launch, sell-off, launch again, and finally after six months — when the insider shares are unlocked — the stock will likely sell off to a buy price. The SEC makes insiders hold for six months before dumping shares. Here is a typical IPO chart pattern: grpn may 15 I used to run a service that played these specific moves. They repeat — and you can make money from this cycle: Initial hype, low number of shares in the float send stock up. The sponsoring broker takes his money out. It's all profit to him. Run-up into earnings; true believers buying back. Insiders unlock. They can and do sell shares... Float increases, stock hits low. Whatever news was held back from the first post-IPO earnings is pushed out in the second quarterly earnings. Stock launches.
Crazy for what is essentially a bulletin board for "friends." Not a good investment at this time.
God is always good!
Facebook will be non existent in 10 years, save for the pictorial exhibitionists and a scattering of voyeurists. GM just pulled $40 million in advertising related to no bang for their buck.
It might survive, but not as it is now. MySpace is still around, just not nearly as popular as it use to be. Facebook doesn't have the development team to stay on top, they will be creamed by an upstart, or by one of the big three: Google, Microsoft or Apple. God is always good!
Yes I am. Facebook reportedly has a billion subscribers. No other media has that kind of number.
Not all of them are real people, some are spam bots, some are fake identities, and others are those impersonating another person. How many real subscribers they have is probably much less than a billion, but still a very high number. Also out of those real subscribers only about 1 percent of them post more than once a week. Email is still the main way people communicate electronically. In Japan they don't even text, they prefer email, so I bet facebook doesn't do very well there. God is always good!
I'd guess Facebook's biggest drawback is the youthful age of subscribers, a group not with that much money. Older folk and geezers with money probably remain predominately with print/tv media adverts.
From Christian A. DeHaemer:
#2. To: Tatarewicz (#0)
#3. To: Tatarewicz, 4 (#0)
#4. To: Jethro Tull (#3)
Facebook will be non existent in 10 years, save for the pictorial exhibitionists and a scattering of voyeurists. GM just pulled $40 million in advertising related to no bang for their buck.
#5. To: Tatarewicz (#1)
surprised to learn that Amazon's P/E ratio right now is 189!
"Satan / Cheney in "08" 
The people of privilege will always risk their complete destruction rather than surrender any material part of their advantage." J.K. Galbraith
#6. To: RickyJ (#2)
#7. To: Tatarewicz (#6)
Facebook reportedly has a billion subscribers. No other media has that kind of number.
#8. To: RickyJ (#7)
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