As has been written on this very blog, and all over the Internet by financial related blogs run by responsible and respectable people (not the Lamestream Mass Media) Facebook IPO is a dog and has lost massive amounts of money for investors in only three days.
But now, it's been reported that even the old-hands, the old pros, at scamming people have been ripped off by Zuckerberg and the Facebook IPO!
Unidentified e-mail scammers (early 2000s)
World recognized scammer (2012)
Facebook shares fell $3.03, or almost 9%, to close at $31. The stock is now down more than 18% since the company went public Friday at $38 a share.
Facebook’s decline on Tuesday was attributed at least in part to a report from Reuters that said Morgan Stanley cut its revenue outlook on Facebook just before the IPO. Morgan Stanley was also one of Facebook’s IPO underwriters.Over at Zerohedge, on the other hand, we get a better idea of the hijinks that went on behind the scenes (and that was very predictable long ago). Please refer to: "Retroactive Market Conditions": Nasdaq Says Would Have Called Off FaceBook IPO If It Knew Then What It Knows Now
As the WSJ reports: "A senior Nasdaq Stock Market official told customers Tuesday afternoon that it would have pulled the plug on Facebook Inc.'s initial public offering had it known the full extent of the technical problems that plagued its systems. On a conference call with brokers after Tuesday's close, Eric Noll, head of transaction services, said the exchange "by no means would have gone forward" with the much-watched Facebook debut if it had known problems would disrupt a "normal trading day." "In retrospect, it was incorrect," Mr. Noll said of Nasdaq's interpretation of problems." At this point every plaintif's bar attorney eyes just lit up, because what Nasdaq just admitted was liability.
This, folks, was absolutely predictable. What does Facebook offer? What does it produce? Nothing. Companies like Apple produce a tangible product. Facebook does nothing of the sort. Imagine if Facebook closed all their "factories" in the USA and shipped them overseas to China, what would be lost to the US economy?
That's what we're dealing with here folks. Facebook produces nothing and has no true revenue. Hence, someday, and I suspect very soon, Facebook's share value will drop to the value of what it produces: Nothing.
Like I wrote before: I'm in a party and in walks Mr. Groupon and Mr. Facebook. I introduce them; "Mr. Groupon? I'd like to introduce my friend Mr. Facebook. Mr. Facebook, Mr. Groupon... You both have much in common so I'm sure you'll have plenty to talk about."
Does that say what I think it says? "Facebook CI A!?"