SERVING THE QUANTITATIVE FINANCE COMMUNITY

Posts: 23951
Joined: September 20th, 2002, 8:30 pm

QuoteOriginally posted by: traderjoe1976I just don't understand how people got suckered into buying it at $45.They believed that the law of supply and demand would trump the law of pricing a discounted cashflow. They were right about the demand side -- a huge number of people desperately wanted shares. But they were wrong about the supply -- FB and the early investors supplied a hell of a lot of shares. With an over-supplied market, people looked at the fundamentals and realized that they couldn't support the bubble price. CrashedMint Posts: 2591 Joined: January 25th, 2008, 9:12 pm ### Facebook QuoteOriginally posted by: outrunI think people wanted to get on board much earlier, but facebook and the underwriters were greedy and decided to wait and sell at the risk adjusted peak value of FB.this.they transformed hypothetical wealth into real wealth at the peak valuation. So if Facebook implodes he has a billion cash in the bank. rest is scorekeeping. hayes Posts: 1181 Joined: July 18th, 2008, 11:24 am ### Facebook QuoteOriginally posted by: Traden4AlphaBlame the U.S. banking & credit card industry which still uses the magnetic-strip technology for almost all cards....... (In turn, this difference is due to cheap landline telephones in the US, but that's another story!)Do tell?...... Surely it's not to do with lack of bandwidth between the ATMs and the banks servers, is it? Traden4Alpha Posts: 23951 Joined: September 20th, 2002, 8:30 pm ### Facebook QuoteOriginally posted by: hayesQuoteOriginally posted by: Traden4AlphaBlame the U.S. banking & credit card industry which still uses the magnetic-strip technology for almost all cards....... (In turn, this difference is due to cheap landline telephones in the US, but that's another story!)Do tell?...... Surely it's not to do with lack of bandwidth between the ATMs and the banks servers, is it?Actually, it's because everyone in the US got a landline (with "free" unlimited local calling) before the advent of smartcards. Hence, payphones were never very common nor very heavily used so the US never deployed the chip-based smartcard technology so widely used in Europe. Hence, no one in the US uses this technology and the entire ATM and POS credit card network uses mag-stripe devices. Moreover, low-cost landlines meant that US retailers switched to online verification pretty early which reduced one of the advantages of smartcards for credit cards. Last edited by Traden4Alpha on May 30th, 2012, 10:00 pm, edited 1 time in total. Cuchulainn Posts: 62370 Joined: July 16th, 2004, 7:38 am Location: Amsterdam Contact: ### Facebook QuoteOriginally posted by: Traden4AlphaQuoteOriginally posted by: daveangelMark Zukerberg struggles with a cash machine on CapriLOL! Blame the U.S. banking & credit card industry which still uses the magnetic-strip technology for almost all cards. That makes US cards incompatible with many EU ATMs and POS terminals that use chip-based cards. (In turn, this difference is due to cheap landline telephones in the US, but that's another story!)What about ATM at the Vatican? Maybe the lingo just confused him. Last edited by Cuchulainn on May 31st, 2012, 10:00 pm, edited 1 time in total. ppauper Posts: 70239 Joined: November 15th, 2001, 1:29 pm ### Facebook Facebook Is a Buy at$20

rmax
Posts: 6080
Joined: December 8th, 2005, 9:31 am

Sounds as though he is talking his book up.

daveangel
Posts: 17031
Joined: October 20th, 2003, 4:05 pm

QuoteOriginally posted by: rmaxSounds as though he is talking his book up.no pun
knowledge comes, wisdom lingers

rmax
Posts: 6080
Joined: December 8th, 2005, 9:31 am

QuoteOriginally posted by: daveangelQuoteOriginally posted by: rmaxSounds as though he is talking his book up.no punv. good!

tagoma
Posts: 18362
Joined: February 21st, 2010, 12:58 pm

Facebook lost more than 40% in value in less than 3 weeks.I wonder whether Obama is already planning to bail out Zuckschmuck's company.

Posts: 23951
Joined: September 20th, 2002, 8:30 pm

QuoteOriginally posted by: rmaxQuoteOriginally posted by: daveangelQuoteOriginally posted by: rmaxSounds as though he is talking his book up.no punv. good!

CrashedMint
Posts: 2591
Joined: January 25th, 2008, 9:12 pm

QuoteOriginally posted by: edouardFacebook lost more than 40% in value in less than 3 weeks.Actually every single senior FB person made more money this month - cash! - than you are probably going to make in your life. So, boo, what losers. The whole Facebook IPO should have been called "Operation: Turn fantasy money into cold hard cash" and was pulled off at peak valuation. Don't you think they knew that now every fucking idiot "analyst" working for a second class shit fund would bash them? My ass worth a look at 20. Why? Why not 22 or 18 or 48 or 64 or 11 or 38? It's random bullshit numbers. But hey, if people ask me: "Yo, you wanna make a billion cash but thing is you'll have to put up with douches and probably people hate you a bit" i'd be in. You?

Posts: 23951
Joined: September 20th, 2002, 8:30 pm

QuoteOriginally posted by: CrashedMintQuoteOriginally posted by: edouardFacebook lost more than 40% in value in less than 3 weeks.Actually every single senior FB person made more money this month - cash! - than you are probably going to make in your life. So, boo, what losers. The whole Facebook IPO should have been called "Operation: Turn fantasy money into cold hard cash" and was pulled off at peak valuation. Don't you think they knew that now every fucking idiot "analyst" working for a second class shit fund would bash them? My ass worth a look at 20. Why? Why not 22 or 18 or 48 or 64 or 11 or 38? It's random bullshit numbers. But hey, if people ask me: "Yo, you wanna make a billion cash but thing is you'll have to put up with douches and probably people hate you a bit" i'd be in. You?Exactly! This is why Buffet doesn't like IPOs: the insiders get to pick the time to sell and -- surprise! surprise! -- the insiders sell at the high.Everybody knows about this nasty little information asymmetry but the IPO buyers sucker themselves through a combination of greed and collective selective memories of those IPOs that did do well. By forgetting the losers, they become losers themselves.

daveangel
Posts: 17031
Joined: October 20th, 2003, 4:05 pm

QuoteOriginally posted by: CrashedMintQuoteOriginally posted by: edouardFacebook lost more than 40% in value in less than 3 weeks.Actually every single senior FB person made more money this month - cash! - than you are probably going to make in your life. So, boo, what losers. The whole Facebook IPO should have been called "Operation: Turn fantasy money into cold hard cash" and was pulled off at peak valuation. Don't you think they knew that now every fucking idiot "analyst" working for a second class shit fund would bash them? My ass worth a look at 20. Why? Why not 22 or 18 or 48 or 64 or 11 or 38? It's random bullshit numbers. But hey, if people ask me: "Yo, you wanna make a billion cash but thing is you'll have to put up with douches and probably people hate you a bit" i'd be in. You?Its not about the money
knowledge comes, wisdom lingers