On a day of heavy volume with the price action to the downside, why are investors selling with the approaching Facebook IPO? While the cheer leading squad roars on, losing money each day, isn't something being missed in this picture? The charts don't lie. Volume doesn't lie. And did you ask why Pincus liquidated $200,000,000 of his company's stock at substantially higher prices? Thanks to the sheep on the message board here, he has become a fantastically wealthy man. If you examine the record of my posts, I predicted all of this some six points ago.
"All the things that are, are with more spirit chased than enjoyed."
I don't do face book.... I don't do ZNGA games.... But I've seen people play a lot of znga games outside of facebook and send ZNGA money to play their games...
Not a social network guy.... But this stock is caught on the traders gambling table andnone of this has to do with their earnings, or facebook's IPO.... this is about volume and volaitity and its feeding on itself....
This stock is making frequent 5% daily moves (mostly down) on volume with a one penny spread, its tapped in the dark side of the trading world..... Fundies don't matter to these folks...
I consider Facebook another company of supreme hype, but let's assume I am wrong, and the company thrives. How difficult would it be for Facebook to create an in house gaming division? Much of the creative work could be outsourced to China. The Chinese are already quite good at computer graphics and animation. I watch one of their animated satires on American politics regularly, and it is extremely creative. When there is no physical product, what makes ZNGA so special? It is neither Google or Microsoft. The whole thing will be easily replicated in locations with a much lower cost of doing business than San Francisco.
Mr. Pincus, sold 1,650,000 shares of a total of 37,152,912...this is 4.44% of his holding of shares.
He also has 1,440,000 held by his spouse
He also has 1,327,300 jointly owned and voting right held by he and his wife jointly.
and he has 27,765,634 held by Ogden Enterprises in which he is the managing director with voting and dispositive power.
So why can't the guy who created a currently 6Billon cap company sell some and pocket 200,000,000?? Thta is really the question.
You should be skeptical at high double digits but not here at $8 and $9 range. The stock is being capitulated around here, as shown by volumes. There is not much downside risk, as the company has $1.5 billion in cash. Buy here & sell at $11 when Facebook IPO.