Fact: MS bought millions of shares friday before the close at $38, putting in bids for millions of shares
Fact: MS sent out reduced estimates to their high rolling clients, telling them to stay away from the ipo, while they pushed it on the little people
The question i have is why did they put in so much support friday, if they knew the shares were overvalued with lower estimates? they are down so big in their position now
Seriously, institutions have an unimaginable amount of money to trade stocks. If they believe that they can slow the decline, they can eventually manipulate the stock to get back the money they spent. They aren't obviously going to sell millions of shares, but with time, they will eventually dump the position through slow manipulation of the stock. Dump to fools like you. Wall Street is filled with crooks. But at $30 and that huge float, it's questionable if it works here.
Because they are the underwriters of the ipo...they r stuck for a while...they tried to make it appear that it was going to take off, but no one bit on the cheese.
goldman sachs already knew of the botch and called everyone on wallstreet and spoiled it..so morgan had to chew on it..then morgan thre in the towel and shorted it on themselves so they broke out even..
its a botched underwriting...morgan is stuck at the top...