There is a reason that IPO offerings rarely go through the
financial retail markets. IPO’s can be complicated offerings that need the
expertise of financial analysts to determine the worth of the offering.
Facebook is being offered through retail markets like TD
Ameritrade allowing individuals to get in on the stock. I am predicting this as
a very bad thing for those investors. My prediction is Facebook stock will be
at its most valuable at the initial offering and will be downhill from there. The
caveat is I am not a financial person and you should do what you think is best
but beware.
Their business fundamentals are limited for the price they
are offering the stock. As a user of Facebook I never look at ads and I suspect
the biggest users of the software are fickle and will eventually find another
site to hang out on.
My final prediction is the biggy. When millions of
individual retail customers lose millions of dollars on this risky investment
don’t go crying to the feds for regulation. You risk you win, you risk you
lose. That is the market. But I expect when Facebook is trading at a $1.00
people will be screaming for their money back, a federal investigation, and financial
reforms; again.
Time will tell…
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