Sunday, May 20, 2012

Stocks and Sectors

Archive for the ‘IPO Analysis’ Category

Facebook: Following Amazon To Success

Posted by admin On May - 18 - 2012

From day one of Facebook’s (FB) IPO process, the emphasis has always been about how they will monetize mobile. Specifically, how can they get away with increasing ads without alienating their users? From much of the company’s rhetoric though, it has seemed that they aren’t in much of a hurry to really push the mobile ad revenue stream as it goes against Mark Zuckerberg’s vision of being a company that is about its users first. It was also stated as such in their latest S-1 filing where they presented the conflict of increased ads with their company culture.

As such, investors banking on the chances of suddenly seeing popup ads every time they check Facebook on their iPhone will most likely be disappointed. (While we are mentioning mobile devices and the iPhone, for a pure play on riding mobile growth, shares of Apple (AAPL) continue to look much more appealing

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By Valuentum:

Alas, the long-awaited social-networking event is here: the Facebook (FB) IPO. But will investors late to the game make money in the firm over the long haul? We’re skeptical.

For starters, we’re less-enthused about the prospects of investing in the social-networking giant due mainly to anticipated, speculative demand from the retail investor and a potential buy-at-any-price mentality. Still, the event has certainly piqued the interest of the social-networking nation — even more so, in our opinion, than LinkedIn’s (LNKD) initial public offering a number of months ago. Having increased interest in the equity markets isn’t necessary a bad thing, but it does mean we’ll probably witness a huge (and maybe unprecedented) post-IPO pop when Facebook begins trading (the investment banks are notorious for mispricing offerings to reward loyal clients). This, in our opinion, will drive prices to unsustainable levels. We strongly caution investors interested in picking up a few shares

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By Valuentum:

Alas, the long-awaited social-networking event is here: the Facebook (FB) IPO. But will investors late to the game make money in the firm over the long haul? We’re skeptical.

For starters, we’re less-enthused about the prospects of investing in the social-networking giant due mainly to anticipated, speculative demand from the retail investor and a potential buy-at-any-price mentality. Still, the event has certainly piqued the interest of the social-networking nation — even more so, in our opinion, than LinkedIn’s (LNKD) initial public offering a number of months ago. Having increased interest in the equity markets isn’t necessary a bad thing, but it does mean we’ll probably witness a huge (and maybe unprecedented) post-IPO pop when Facebook begins trading (the investment banks are notorious for mispricing offerings to reward loyal clients). This, in our opinion, will drive prices to unsustainable levels. We strongly caution investors interested in picking up a few shares

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By Moby Waller:

The social media behemoth Facebook (FB) is going public this week, with a new stock symbol of FB. This is pretty much the most anticipated Initial Public Offering (IPO) since Google (GOOG) in 2004. GOOG was offered in the IPO at around $85/share, started trading at about $100, and is now about $628 – hence why many people are interested in the Facebook IPO.

The IPO price will likely be in the $34 to $38 range (which has just been raised due to demand apparently), but when it starts publicly trading, who knows where it will open (likely higher). And they have raised the number of shares available in the IPO by 25%, in response to strong demand. Both the raising of the offering price and the increase of shares is a concern in our view.

If you want to try to buy it for the IPO price and flip

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Why Not To Buy Facebook

Posted by admin On May - 18 - 2012

By Andrew Borenzweig:

The biggest story of the week is undoubtedly Facebook’s (FB) enormous IPO. The company that Zuckerberg started in a Harvard dorm room and changed the way people interact and communicate will finally become publicly traded. Facebook has developed a long way from its days at Harvard, but despite this, the company still has much to prove before it should be considered a long term buy. Over the years, Facebook has accumulated approximately 800 million users. This number is incredible, almost one billion users, and many people must be thinking that it must be impossible not to invest in a company that attracts such a multitude of people. Well, the reasons are numerous, and much of Facebook’s future success is entirely based upon these users. The fickle users pose somewhat of an ultimatum for Facebook; listen and tend to the users who helped make the company what it is today, or

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IPO Preview: Facebook

Posted by admin On May - 18 - 2012

By IPOdesktop:

Facebook priced at $38 for trading Friday morning.

Listen to the Facebook conference call here, with Rob Enderle. The conference call was initially released just for subscribers, who registered for the conference call, which was Wednesday, May 16th.

What follows is series of updates posted for our subscribers.

May 17th update
A word to retail investors

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A Closer Look At Facebook’s S-1 And Prospects

Posted by admin On May - 17 - 2012

By Rajiv Tarigopula:

Amidst all the uncertainty this week regarding the European economic situation in the aftermath of the sovereign debt crises that have plagued the continent, one gem emerges as perhaps the most anticipated initial public offering in U.S. equity markets in the last decade. Facebook, Inc. (FB), the seemingly ubiquitous social networking giant started in a Kirkland House dorm room at Harvard University, is going public.

This is old news – anyone who hasn’t heard of this week’s IPO probably lives under a rock. However, despite the intense media scrutiny, bullish sentiments and criticism, there remains a great deal of material information left un-analyzed in the S-1 registration paperwork filed with the U.S. Securities and Exchange Commission by David Ebersman, Facebook’s CFO.

The basic information on the upcoming IPO has been thoroughly disseminated – equity shares of the company will trade under the ticker “FB” on the tech-heavy Nasdaq index. New

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Eduardo Saverin Joins The Stateless Billionaires

Posted by admin On May - 17 - 2012

By Felix Salmon:

The United States is the only country in the world which applies the same tax regime to all its citizens, regardless of where they live: nowhere else are nonresidents charged the same federal tax rate as residents. And this makes America’s plutocrats qualitatively different from every other country’s super-rich.

If you wanted to sum up Eduardo Saverin in three words, you could do a lot worse than Very Rich Eurotrash. He didn’t become a Facebook (FB) billionaire because of his hacking skills or because Mark Zuckerberg happened to be his roommate in college; he became a Facebook billionaire because he had cash, and Zuckerberg needed cash to get Facebook off the ground. Zuckerberg provided the valuable labor which went into creating Facebook; Saverin, for all the ideas he had, was basically needed for his money, and his ideas ended up going nowhere. Today, now that he’s dynastically wealthy, he says

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Public Pension Funds, IPOs: What Will Facebook Tell Us?

Posted by admin On May - 17 - 2012

By Public Fund Point:

Public pension funds practically have the largest investment portfolios on an absolute dollar basis when compared to most investors, retail and institutional, and consequently are the largest allocators to domestic equities and other asset classes. Due to limited staff and resources, the majority of public pension funds will likely hire professional (and emerging) investment managers to act as fiduciaries and manage assets per specified mandates and investment guidelines, and on behalf of all participants per a respective plan.

With the wave of recent IPOs and the hype towards Facebook (FB) going public, knowing the interest in the following companies from a public pension fund perspective may shed light to potential winners and losers: Angie’s List (ANGI); Demand Media (DMD); Groupon (GRPN); HomeAway (AWAY); Jive Software (JIVE); LinkedIn (LNKD); Pandora (P); Yelp (YELP); Zillow (Z); and Zynga (ZNGA). The following pension funds, as of March 31, 2012, had interest in these

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Facebook Vs. Google: What You Need To Know Post-IPO

Posted by admin On May - 17 - 2012

By Husky Financial:

Facebook (FB) will be ringing the opening bell anytime now. The hype and hysteria that will ensue will surely be of epic proportions. The bulls and bears are licking their chops, ready to pound the other into the pavement and prove that their side of the debate is the right side. In this day and age, it’s easy to get caught up in the “noise” that surrounds a certain group of polarizing stocks. Facebook has already joined that group, and is perhaps the highest profile, most polarizing company since Apple (APPL) came to town.

With the great debate going on as to whether Facebook is worth $200 billion, $20 billion, or somewhere in between, I thought it would be valuable to take a look at the last “Great Tech IPO.” This would be none other than Google (GOOG), which went public in 2004 raising just under $2 billion with an

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