SEC Calls For Review of Facebook IPO

beaverdownunder writes "After losing another 8.9% of its IPO value in its third day of trading, SEC Chairman Mary Schapiro has called for a review of the circumstances surrounding Facebook's IPO on the NASDAQ late last week. Unable to sell Facebook short, investors have instead taken to short-selling funds that owned pre-IPO shares as revelations come out that the underwriters involved revised their Facebook profit forecasts downward in the days before the offering without similarly revising the opening share price. Meanwhile, Thomson Reuters Starmine has come out with a post-party Facebook estimate of a meager 10.8 per cent annual growth rate, valuing the stock at a paltry $US9.59 a share, a 72 per cent discount on its IPO price, signaling that the battered stock may not have found the bottom yet."

Comments

Re:When Zuckie himself is selling shares

[gmhowell]

It seems that neither you nor the other posters get it. Or have had a girlfriend or spouse. He just got married. You have any idea how much it costs to keep them around?

And if you really want your mind blown, wait till you see how much a divorce costs. OTOH, whereas an overpriced wedding ceremony is overpriced, a divorce is worth every penny.