facebook IPO.. how can one get in pre-bubble?

[dr_trick]

hi,

i think facebook is going public next on the 18th or so. there's a lot of hype around it and i guess like linked-in the price is going to shoot up on day zero.

the pros will grab the stock on the cheap pre-opening and the by the opening bell the market makers would set the ask prices quite high.

my question is, for us plebs... how do we get in before the spike. or is staying out altogether a better strategy?

cheers

 

[the hare]

Why not just spunk your wad down at the casino, at least you'd get free drinks

 

[breadman]

just forget about it,
market cap 85 to 95 billion
earnings of about 1 billion = p/e of 85+, world stock markets trade on a p/e of 10 to 20, so why pay over 4 times as much.

lets asume they make 2 billion the next year, 3 billion the year after and 4 billion the year after that. They will still have a p/e higher than the market 3 years from now even if the share prices stays the same. at some stage in the future their p/e will come more in line with the market.

having said that I am sure people will be be out in force on the first day bidding up the price.

 

[The Leopard]

Face it, this is a classic lulz situation. There's gone to be a ton of mug punters for the pros to shaft.

 

[DionysusToast]

The purpose of an IPO is to raise funds for the company and the investment banks running the IPO.

The investment banksthat run the IPO get an absolutely huge slice of the pie and it is their job to get the best price possible by gouging the punters. A lot of this slice is in shares.

Some of the shares that the various scumbags award themselves during this process are subject to a lock-in period and can't be dumped.

So - you can do one of the following:

1 - Buy an associated company or a peer company and hope all ships are lifted in the aftermath of the IPO. You need to start doing that right about now.
2 - Buy a month or so before the lock-in period expires because you can expect some pumping
3 - Short just before the lock-in period expires because there's no need for it to be propped

 

[DionysusToast]

Just remember - the investment banks job is to get the best price from mug punters - so whilst IPOs do often rise after they are issued - the MAJORITY (90% off the top of my head) are worth way less than the IPO price a year afterwards.

I'll dig out the stats on Monday....

 

[tar]

Why not just spunk your wad down at the casino, at least you'd get free drinks

or here ( the broker may not be reliable ) :

facebook options | facebook IPO price

or use IGindex to speculate on Facebook market cap size now it is ( IG price ) standing at 109 Billion $ came down from 120s i think .

 

[tar]

FB shares value has already gone below £38: kind of predictable I would say...

38 $

http://www.trade2win.com/boards/gen...550-facebook-ipo-18th-may-predictions-20.html

 

[DionysusToast]

Just remember - the investment banks job is to get the best price from mug punters - so whilst IPOs do often rise after they are issued - the MAJORITY (90% off the top of my head) are worth way less than the IPO price a year afterwards.

I'll dig out the stats on Monday....

Read 'em & weep people...

IPO Performance - Hoover's IPO Central