Over 1 billion shares to dump and tax selling to take place before the end of the year. Companies will cut back on ad revenue budgets and nobody except facebook employees click on the ads anyway.
Not a buy!
...lest we forget FB's SEC filing in Oct -- where JP Morgan floats FB a $1,500,000,000 loan (charging interest!) to fund taxes and IPO settlements. Borrowing to cover the taxes coming...oh, and paying off IPO insiders.
"$50 Billion Dollar company" with $300 million in quarterly income. ...That "$50 Billlion" can change to anything on the whim of a wall street rumor or sneeze. watchout!
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
On October 25, 2012, Facebook, Inc. (the “ Company ”) drew $1.5 billion under its amended and restated unsecured term loan facility (the “ Amended and Restated Term Loan ”) with J.P. Morgan Securities LLC, as Administrative Agent, and the lenders party thereto. The draw was made to fund a portion of the tax withholding and remittance obligations of the Company related to the vesting and settlement of restricted stock units in connection with the Company’s initial public offering. No further amounts remain available to be drawn by the Company under the Amended and Restated Term Loan. The $1.5 billion draw is subject to the interest, events of default and other terms set forth in the Amended and Restated Term Loan, a copy of which was filed as exhibit 10.1 to the Current Report on Form 8-K filed by the Company on October 15, 2012.
bruce kasting from zero hedge...
"...800m shares of FB got freed up this week; a bunch of money was positioned short in the stock waiting for some new sellers to appear. Of course when everyone knows all this well in advance, and CNBC is talking it up non-stop, the opposite has to happen. So the shorts got creamed, and I got a laugh.
I have no idea what the right price for FB is. I do know that the current price is a composite of these factors:
- A significant amount of the current float is still held by retail accounts that own it from the IPO at 38. They all hate the stock.
- At $23 a share, and a big float, FB is perfect trading fodder for all sorts of players:
Generally speaking, that crowd of actors is bad news for the widows and orphans."
close to 94% insiders SOLD. there's a message there somewhere.
defies gravity - like the icing in twinkies!
Net Share Purchase Activity
Insider Purchases - Last 6 Months
Purchases 47,846 1
Sales 253,224,000 20
Net Shares Purchased
(Sold) (253,176,154) 21
Total Insider Shares Held 16.33M N/A
% Net Shares Purchased
(Sold) (93.9%) N/A
Net Institutional Purchases - Prior Qtr to Latest Qtr
What part of FREE Social Media Site do people not understand. Just because you cat, dog, house, and car has a facebook page does not mean they click on the ads. Just because there are employees and computer bots clicking on the ads doesn't mean retailers won't catch on real quick
Facebook lost it's cool factor before the IPO that is why they decided to cash in and get rich before the bottom fell out.