Nigerian E-Mail Scammers Lose Other People's Life Savings In Facebook IPO Scam!

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)

Marketwatch reports in: Facebook Loses Keep Taking Tech Spotlight

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? 

Nothing.

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."


Splat!

Does that say what I think it says? "Facebook CI A!?" 

(Don't believe me check the link here)

"Houston, we have a problem" Facebook Fizzles! Fails to Liftoff

Some things just make me chuckle... Like I've said a hundred times:


Groupon's business built on SPAM mail is a terrible business model.


Facebook doesn't have a profit model.

Facebook's IPO was a failure: Yahoo reports in Facebook Fizzles

All that hype for a 23-cent gain! Facebook's (FB) first day as a publicly traded company started with a bang and ended in a wimper. FB shares opened on the Nasdaq at 11:30am et, after a 30-minute delay, at $42 each; 11% higher from the IPO price of $38. Within 10 minutes, that gain was cut in half and stock hovered around $40 for most of its shortened trading day, before officially closing at $38.23.

Facebook's Opening Day

While difficult to cut through the hype surrounding this stock, some cautionary signs emerged in just the last two weeks leading up to the IPO. We've discussed them at length here on Breakout. Slowingrevenue growth, General Motors (GM) pulling ad spending, and monetizing mobile usage are strong, but not alarming, reasons to question when to buy, how much to buy, and whether this is the right investment for you.

Earlier today Breakout covered the Facebook open live from our New York studio and the Nasdaq market site. In the attached video tech analyst David Garrity of GVA Research highlights some of the biggest issues to keep in mind if you're thinking about buying Facebook after the IPO honeymoon.

I called Groupon correctly and let me make a guess on Facebook. Facebook will be in the mid $20 range by December.


I have no position of Facebook... Wish I could short the hell out of this company. 

Facebook IPO in BIG Trouble? Could Be!

Could Facebook become the big money loser that some of us think it will? Yep. The tea leaves are lining with the stars...

Sometimes I read something that just makes me say, "I told you so!" and I laugh all the way to the refrigerator to get myself a stiff drink so that I can chuckle some more. Last month I wrote in Facebook is a Failure as a Marketing and Sales Tool - Here's Data!

Looking at how badly Groupon is dropping, refer to Groupon Shares Fall Off a Cliff, Down 42% Since IPO, Facebook had better IPO as soon as possible because I suspect that the actual value of these social networks could be close to zero. I already know that Facebook is losing money. 

Don't forget that, just a few years ago, Myspace was the King of Social Networks... Today? They closed their office in Japan last month.

Could Facebook be a few years behind Myspace?

Well, but what do we have here? Looks like Facebook's IPO could be in BIG TROUBLE! Bloomberg reports in Facebook IPO Said to Meet Weaker-Than-Forecast Demand:

Facebook Inc. (FB)’s initial public offering has so far generated lower-than-expected demand from institutional investors who are concerned about the company’s growth prospects, people with knowledge of the matter said.

Some investors expressed reluctance after Facebook said on May 9 that advertising growth hasn’t kept pace with the increase in users, said the people, who asked not to be identified because the process is private. Facebook is also telling analysts that sales may not meet their most optimistic projections, two people said.

Facebook executives have another week to market the IPO, scheduled to price on May 17, and underwriters are stepping up efforts to drum up interest from large shareholders, one person said. Underscoring concerns that growth may taper for the world’s biggest social network, 79 percent of respondents in the Bloomberg Global Poll of 1,253 investors, analysts and traders who are Bloomberg subscribers said Facebook doesn’t deserve a valuation at $96 billion, the high end of its projected range.

“Expectations on Facebook are way too high,” said Mitsuo Shimizu, a market analyst at Tokyo-based Iwai Cosmo Securities Co. “Given its fundamentals, the company doesn’t look anywhere cheap in valuation.”

As with Groupon, Facebook's business model is seriously flawed. In Groupon's case, the business model is built around SPAM mail... What business model built around sending people junk mail and SPAM could possibly be good? I wrote about that in Groupon is a Disaster! What Did I Tell You?


In Facebook's case, well, in Facebook's case, I don't really know what the business model is excepting to sell paid advertising and that model doesn't seem to work at all anymore.


Groupon's share price is now less than 50% of its IPO in just six months, nearly 70% off its high. Will Facebook do the same? 


Don't bet that it won't. Facebook is the end of the honeymoon between investors and Social Media.

Today's Economic and Social Titanic?

Nod and warning to stay away from any Facebook IPO!):

See more at: Zerohedge

I agree about the commentary about the financial problems (with symptoms like Facebook IPO and suspect that Facebook hasn't a good future... I mean, Facebook isn't cool at all anymore, especially since advertisements started showing up on their pages).  But, in this artwork, where is Groupon? Oh? That's right; Groupon isn't even important anymore. It's just at $13 right now... Losing over 46% of its value in six months... as I predicted.


Though, with all the recent hoopla about "Fukushima being the end of civilization as we know it," I wonder why it gets a third rate billing under Peak Oil, News Corporation, the Katrina disaster and Lehman...