The problem was that all the evaluators downgraded their estimates right before the IPO, and not everyone was aware of the downgrade. All the big investors got wind of the downgrade at the last minute and put cancellations on their pre-orders. That caused Nasdaq’s systems to overload the morning of the IPO. People who didn’t know about the downgrade bought at the high price while all the cancellations caused the price to immediately drop.
Here in California, Governor Jerry Brown is counting on taxing all that IPO cash in order to balance next year’s budget—especially since he borrowed 15 Billion from the Feds this last year and still managed to fall 16 Billion dollars short of breaking even.
Does CA’s governor have absolute total control of the budget and spending for CA? Or did he have help? Not that he was much of a conservative to begin with….
With respect to the Facebook silliness . . . . . an investor is not guaranteed an instant profit in an IPO. Oftentimes it does work out that way, but often it does not. Witness GM – the government sponsored IPO. It was expected to fetch $27/share, but went for $32. Now, a bit over a year later it is $22, in spite of the fact that they are making a lot of $$ and have some $32.5 billion in cash . . . .
I now know why I saw a pig fly past my window, every day next month on my calendar is marked “SUN”, my cow wandered back and there’s ice in my sub-sub-sub basement indicating a certain place has frozen over. Michael Ramirez did an editorial cartoon in which he doesn’t blame President Obama for anything.
first thing I thought was “where’s Obama’s picture?” after all this is Mike Ramirez. Facebook is overrated. Who wants to hear what a bunch of relatives say?
hanmari almost 12 years ago
The problem was that all the evaluators downgraded their estimates right before the IPO, and not everyone was aware of the downgrade. All the big investors got wind of the downgrade at the last minute and put cancellations on their pre-orders. That caused Nasdaq’s systems to overload the morning of the IPO. People who didn’t know about the downgrade bought at the high price while all the cancellations caused the price to immediately drop.
Dtroutma almost 12 years ago
Dot Com (con?)
hanmari almost 12 years ago
Here in California, Governor Jerry Brown is counting on taxing all that IPO cash in order to balance next year’s budget—especially since he borrowed 15 Billion from the Feds this last year and still managed to fall 16 Billion dollars short of breaking even.
cwsprague almost 12 years ago
Does CA’s governor have absolute total control of the budget and spending for CA? Or did he have help? Not that he was much of a conservative to begin with….
petergrt almost 12 years ago
With respect to the Facebook silliness . . . . . an investor is not guaranteed an instant profit in an IPO. Oftentimes it does work out that way, but often it does not. Witness GM – the government sponsored IPO. It was expected to fetch $27/share, but went for $32. Now, a bit over a year later it is $22, in spite of the fact that they are making a lot of $$ and have some $32.5 billion in cash . . . .
NoTimeTheBook_com almost 12 years ago
Thanks Michael R, good point — something we can all agree to.
runar almost 12 years ago
I now know why I saw a pig fly past my window, every day next month on my calendar is marked “SUN”, my cow wandered back and there’s ice in my sub-sub-sub basement indicating a certain place has frozen over. Michael Ramirez did an editorial cartoon in which he doesn’t blame President Obama for anything.
Ph8549 almost 12 years ago
first thing I thought was “where’s Obama’s picture?” after all this is Mike Ramirez. Facebook is overrated. Who wants to hear what a bunch of relatives say?