You read it right. Now the shocker and it is from Reuters;; Reuters' Alistair Barr is reporting that
Facebook's lead underwriters, Morgan Stanley (MS), JP Morgan (JPM),
and Goldman Sachs (GS) all cut their earnings forecasts for the
company in the middle of the IPO roadshow. They told it to the institutional
investors but nothing to the retail. No wonder Goldman calls the retail
investors as “Muppets” in their internal emails!
If we did not live in a banana republic, the lead
underwriters and owners of FB would have been hauled for criminal conspiracy to
defraud the investors. But that is not going to happen. The rot in the system
is too pervasive. But even the muppets are to be blamed for their greed. One
would have thought that by now the retail investors have learned their lesson
as how the St. games the system, but no, not a chance in hell. From NY Post:
After a 30-minute
delay, individual New York investors gobbled up stock online and at discount
brokerage houses.
Queens chauffeur
Thomas Gardner, whose home was just foreclosed on, could only afford $89 for
two shares, which he hoped would eventually send his 9/11-born son to St.
John’s University.
“This is a good
start,” Thomas said, beaming as he came out of a Midtown Charles Schwab office.
“Everybody is hoping for something, so I’m jumping on this wagon. I have a good
feeling.”
Michael Scott, an
Upper West Side architect, bought his shares on his iPhone.
“I like the chase,” said
Scott, who bought Google stock at $100 a share in 2004 and still holds the $618
stock.
Retired nurse Teresa
Ryan, who lives in Tudor City, bought 4,920 shares at $40.50, noting she made a
killing on Apple stock.
“I’m very psychic when
it comes to stocks, I really am,” said Ryan. “I have no retirement, I have no
pension, so I try to make money on the market.”
Zuckers!
I am disappointed that there are no puts available on FB or
I would have bought a boat load of puts on FB. If you consider the EPS of Apple
or Google, FB should be trading at $ 2, max. $3. No more.
Coming back to market, the early morning euphoria was absent
by the day’s end. We may see further dip
tomorrow at least in the morning and that is why doing nothing now is a
good idea. Let me repeat what I wrote yesterday: “Tomorrow might be a red day and a better entry point. There is no
hurry. This is not the last train leaving station.” Logically and
technically speaking, there has to be a test of selling pressure and how
aggressively the dip gets bought before we can determine the strength of any
up-swing. Pardon me if I have confused you but
if and when I go long, I will inform you by twitter. More the reason
you should join me in twitter (@BBFinanceblog). As you know, I do not spam with
unnecessary tweets and say something only when it is worthwhile. Most of the
time, it is just noise out there and not worth bothering.
The late day sell-off was triggered by the rumour of Grekxit. This time the rumours are working
the other way, to create panic. You can actually see through the game. Greece
will exit Euro but not now, may be in another six to eight months time. Despite
all the bravado, Europe is not yet ready to face the mess. And don’t forget the
almighty “O” wants to get re-elected and will do everything in his power, including
arm-twisting the European leaders to at least temporarily pull a rug over the
problems and print more money.
So we wait for more price action to get a better idea about
the immediate direction of the market. Thank you for reading http://bbfinance.blogspot.com/
BB, do you post your comments to stocktwits to? If not you should try it out! Can connect it to your twitter account
ReplyDeleteThanks. I opened the account and connected with Twitter. Let me know how to use it effectively. Never used it before.
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