How much loss Morgan Stanley and Chase going to suffer? Say it opens at $35? Serious comments pls. Don't need pumpers suggesting $100 or bashers hoping for $10.
MS will just trade in small amount to bring the stock up to 40-45, so institutional investors can unload their shares. Unwise retail investors will eager to buy thinking FB will go higher (not to miss the opportunity). Once the big clients dump almost of all of their shares, MS will no longer support this activity, and price will drop. I am sure MS has received a lot of phone calls from their big clients as what to do for the next few days. It may sound illegal, but it has done before and SEC can't and won't do anything. This is rigged!
Could not be more wrong. 45 in the short term is clear to see. EASIEST trader IPO ever - yes small gains, but buy the 38 and sell anywhere over 40; next move, go for the appreciation that is coming. Next base at 45.
"the charts show a strong sell off Monday"? Says who- the charts- Regale us with an articulate explanation as to exactly how the charts portend a sell off- sounds like a lame bash to me. Anyone can say the charts say anything- ad nauseam. If you can't dazzle us with brilliance, then don't try to baffle with B.S.
MS is likely in discussions with insiders this weekend to lower the number of shares they actually sold.These "returned" shares will be used to keep it propped up at $38 for awhile.How many of these insiders will be willing to take shares back and how many shares they will take back is the question.The underwriters have all types of mathematical games they can play to deceive the naive..
I don't know the specifics for this IPO, but the law concerning IPO's stipulates that insiders CANNOT! I repeat CANNOT sell their shares within 6 months following the IPO; in jargon, these 6 months are called the "lock-up period".
I assume that for the FB IPO, the law applies.
I expect too it will be propped up above $38 the coming week, but selling pressure will increase and once focus of the media shifts away from FB and back to US elections, euro crisis etc., I see the stock silently go down to $30 in 4 weeks
day to day stock mvmts should not be a concern; what matters is if longer term 3 months out, the stock hovers around $30 and still trending down. What will that do to investors confidence of the hot and buttered FB crowd! Will they be happy logon in FB knowing thousands of $ or more are lost in their account? Elaborate this further...
I think the underwriters will still hold $38 at least through Monday.
The fact that it bumped $38's bottom during the IPO's first day and it closed pennies above $38 (which was the lowest it was allowed to go) says it isn't going to pop - or it would have. Wouldn't it? Good luck.