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Farcebook: Now $19.87 (starting price $38)

Posted By TelecomTV One , 17 August 2012 | 2 Comments | (1)
Tags: Facebook zuckerberg bubble

They went down below $20.00 a couple of weeks ago, then recovered slightly. But now the lucky people working at the awesome Facebook (or some of them) get to cash in some shares. Wheee... down we go again. I.D. Scales reports.

May 18, 2012. IPO Price $38.00
May 22, 2012. Price 34.03. The shares fell by 11.3 per cent as banks and brokers withdrew the support they had reluctantly provided on launch day.
June 6, 2012.  Price: $ 25.87. Facebook's shareprice is now 32 per cent below that initial public offering and the slide is steady.  
July 27, 2012.  Price $ 23.94.  Facebook shares are down another 11 per cent to a record low after the company announced its first results since its floatation in May.
August 3, 2012. Price $19.82. Facebook shares hit an all-time low when the company reveals that around 83 million of the site’s 995m million profiles are fake. 
August 17, 2012. Price $19.87.  End of first "lock-up" sees a minor sell-off and shares fall by 6.27 per cent to $19.87 at close of trade in New York, down from $20.74 the day before .
One of the lock-up periods ends. No, they haven't let Zuckerberg out of jail (they haven't even put him in yet).
It's all about early-investing insiders being allowed to cash in. According to reports, around 271 million shares were eligible to be sold yesterday (Aug 16th) and a proportion were. We all know about supply and demand so, amid continuing worries about strategy (i.e. the obvious fact that Facebook is highly unlikely to justify anything near or adjacent to its initial $100 billion or so price-tag), we're still on the way down to the dollar or two per share the site will prove to be worth in the long run.
As we've consistently posted every time we run this series of Facebook stories (because I copy it in from the story before)... we've said some very vitriolic things about this IPO and with hindsight we'd like to say that we don't regret a single word. But here's the problem: even the most jaundiced observer must admit that Facebook is probably worth something...  but what? What price do you think the stock will stablise at (if at all)?  Put your estimate in 'comments' below and we'll keep updating this story as the price continues to drop (or not).
Remember, the value of stocks and shares can actually go up as well as down.

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(1) 17 August 2012 12:18:12 by Robert Maitland

Getting close the the $15.43 price I predicted it might stabalise at

(2) 17 August 2012 12:24:08 by Robert Maitland

Although Id like to add now that having heard about the new ways they are introducing advertising based on friends 'likes' should worry investors.

The only thing users have invested is time and effort, shareholders have a lot more at stake. A churn away from face book by a new generation of teens willing to populate the 'next facebook' should always be a constant concern of such a 'fad' driven product.