Facebook IPO

[artloversplus]

<p>Everyone is talking about it. Its the hottest thing on Wall Street.</p>

<p>We were offered some pre-IPO insiders stock, which is traded frequently on the street at around 40-46…</p>

<p>What is your thoughts of owning those stocks? And your opinion on the Facebook IPO in general?</p>

[dstark]

<p>You’re restricted from selling until 6 months after the IPO, correct?</p>

<p>What is the market valuation?</p>

<p>Gambling money, right?</p>

[Pea]

<p>Did you buy it? Yes, it’s gambling.</p>

[artloversplus]

<p>no, not yet, its not a small chunk of change. I saw most of them are offered in 5000 shares each. we have to think twice about those 141 stocks.</p>

[dstark]

<p>Nevermind… :)</p>

[Pea]

<p>So you would buy 5000 shares at around $40.00 per share. I wouldn’t do it but I have a pretty low tolerance for risk.</p>

[artloversplus]

<p>I don’t know, I was not an angle for Ebay when they invited me in 1996…</p>

[soccerguy315]

<p>If it’s trading at 40-46 now I think it’s a really good buy… from my perspective as a casual stock market watcher.</p>

[artloversplus]

<p>yes, its a gamble.</p>

<p>the stocks purchased from these offerings are under rule 506 of reg D, so it is a 144 stock. the broker will consolidate all investors money to participate in an auction with minimum of 200K shares. minimum participation per individual is around 100k.</p>

<p>you nedto be an accredited investor</p>

[artloversplus]

<p>Well, If you’d like to know,

How can I get Facebook shares at the IPO price?

</p>

<p>here are the answers.</p>

<p>[Ask</a> Matt: How can I get Facebook shares at the IPO price? ? USATODAY.com](<a href=“http://www.usatoday.com/money/perfi/columnist/krantz/story/2012-02-12/offering-facebook-ipo-shares/53044084/1]Ask”>http://www.usatoday.com/money/perfi/columnist/krantz/story/2012-02-12/offering-facebook-ipo-shares/53044084/1)</p>

<p>Do you wish to gamble now? or when it is offered to the public.</p>

<p>Remember, LinkedIn was IPOed at 45 and went to 93 on the same day.
What would your guess Facebook going to be? This is an Internet IPO boom 2.0 question…:)</p>

[artloversplus]

<p>here is some one’s valuation</p>

<p>

Facebook would be priced at something between 75 times and 100 times past earnings, based on valuation estimates. Google shares were valued at slightly more than 100 times earnings in their initial offering.</p>

<p>Those numbers are high, but not out of the question for profitable companies growing very rapidly. I’d focus on the profits and snap up a stock like Facebook if I could buy it for a price that works out to 75 times last year’s earnings. I’d sweat if the price approached 100 times earnings and run for my life if it cost even more to buy a little piece of Facebook.</p>

<p>

</p>

<p>Am wondering what is collegeconfidential’s ebitda?</p>

[artloversplus]

<p>^^ I am trying to do both… It is increasingly difficult to buy houses at bargan prices. and linkedin did hold its price… however, I realized that their shares were sold off at exactly 6 months after IPO as those 144 stocks were dumped on the market, it went from 106 high to 56 low, then climb up again to 90. Google did not suffer the same fate.</p>

[artloversplus]

<p>Now it is almost certain that the FaceBook IPO will happen, the last Sharepost auction yeild $44.10, the highest price ever paid for its 144 stocks. Based on that price, it is valued at over $100 Billion Dollars.</p>

<p>What would be your guess the IPO price?</p>