Tech IPO's - The next dot com bubble? - Page 3

Octoman · May 21st, 2012, 03:54 PM

Oh dear

WatcherZero · May 21st, 2012, 03:57 PM

Now down 10%

***gothicform*** · May 21st, 2012, 03:59 PM

why is anyone surprised? i can't be the only person to have shorted facebook and LOLed when the banks had to underwrite the IPO. i never normally short shares but anything to fuck zuckerberg up.

http://www.businessinsider.com/exclu...is-own-thing-1

WatcherZero · May 21st, 2012, 04:01 PM

11% its in freefall!

edit: 13%!

SimonTheSoundMan · May 21st, 2012, 04:01 PM

This is what will be played on the NASDAQ floor soon.

***gothicform*** · May 21st, 2012, 04:06 PM

Quote:

Originally Posted by WatcherZero

11% its in freefall!

edit: 13%!

haha yeah. by this time next month no reason it won't be down 33 to 50 percent! tech IPOs are a great way to make money... by shorting them. never fails these days as silicon valley is so damn greedy.

SimonTheSoundMan · May 21st, 2012, 04:09 PM

I think that's it for today. Hit $34 and underwriters doing their thing.

Octoman · May 21st, 2012, 04:21 PM

I thought bond markets could be insane but they really are a model of sanity compared to equity markets.

Looking at the transactions the underwriters are just hoovering up all the stock. Presumably they will just dump it into the market at a later date. That suggests to me the price of the stock is going to be structurally undermined for some time.

***gothicform*** · May 21st, 2012, 04:29 PM

i know. it's beautiful isn't it. i can't be the only person shorting the shit out of facebook, just as i did with zynga before it.

PrevaricationComplex · May 21st, 2012, 04:36 PM

I don't know the inner workings of the stock market, but I imagined it would be harder to short something that just floated?

***gothicform*** · May 21st, 2012, 05:47 PM

if it's for sale on the markets you can short it somehow

if you can't short directly there's spreadbetting.

Octoman · May 21st, 2012, 05:54 PM

Just sell the stock. Standard settlement is 3 days. That means if I sold today I don't actually have to hand the stock over until Thursday (this is a hangover from when everything was in physical / bearer form and a few days were needed for the certificate to arrive in the post.

On Thursday buy it at the lower price and hand it straight over.

Incidentally, that would be a naked short.

***gothicform*** · May 21st, 2012, 05:57 PM

can you do naked shorts on NASDAQ though?

Octoman · May 21st, 2012, 06:03 PM

If you are an instituational client I can't see why not. Ordinary clients probably have to jump through loops, I'm not sure.

There isn't much advantage naked shorting versus conventional shorting anyway. Pension funds are very happy to lend out shares to shorters in order to earn a bit of money. You could rent a block of Facebook shares off of someone like prudential for a week at a surprisingly low cost (couple of pennies per share). You can then go away and sell them and then buy them back after a week and return them. The only difference between your naked shorting profit and this is your 'rental costs' (or the haircut on the repo agreement as it is properly known between you and the pension fund) which is fractional.

PrevaricationComplex · May 21st, 2012, 06:29 PM

So you're still borrowing from institutional investors then? Specifically there's no retail frenzy getting in the way of you getting your hands on some FB shares?

***gothicform*** · May 21st, 2012, 08:13 PM

no. the share is now seen my main street USA as overvalued and they can't sell quick enough, hence the underwriters are having to hoover up the shares, see post 48. actually that's a yes.

SimonTheSoundMan · May 22nd, 2012, 03:37 PM

Third day of trading, down 2.7 points or 8% right now.

WatcherZero · May 22nd, 2012, 04:02 PM

Ive heard $50bn listed as a serious valuation with the belief the price will fall steadily until it reaches this level.

***gothicform*** · May 22nd, 2012, 04:21 PM

Quote:

Originally Posted by WatcherZero

Ive heard $50bn listed as a serious valuation with the belief the price will fall steadily until it reaches this level.

that's what i'm banking on, doubling my money through fuckerbergs misfortune

Octoman · May 22nd, 2012, 04:23 PM

Alas, Fuckerberg has his pot of gold.

What would be fantastic would be if the share price fell low enough for someone like google to snap them up

May 21st, 2012, 03:54 PM	#41
Octoman Boo! Join Date: Nov 2006 Location: London Posts: 20,681 Likes (Received): 470	Oh dear __________________ My picture threads : Venice - Naples and the Amalfi coast - Florence and Tuscany

May 21st, 2012, 04:01 PM	#45
SimonTheSoundMan Unregistered User Join Date: Mar 2006 Posts: 7,433 Likes (Received): 128	This is what will be played on the NASDAQ floor soon. __________________ .

May 21st, 2012, 04:09 PM	#47
SimonTheSoundMan Unregistered User Join Date: Mar 2006 Posts: 7,433 Likes (Received): 128	I think that's it for today. Hit $34 and underwriters doing their thing. __________________ .

May 21st, 2012, 04:21 PM	#48
Octoman Boo! Join Date: Nov 2006 Location: London Posts: 20,681 Likes (Received): 470	I thought bond markets could be insane but they really are a model of sanity compared to equity markets. Looking at the transactions the underwriters are just hoovering up all the stock. Presumably they will just dump it into the market at a later date. That suggests to me the price of the stock is going to be structurally undermined for some time. __________________ My picture threads : Venice - Naples and the Amalfi coast - Florence and Tuscany

May 21st, 2012, 04:36 PM	#50
PrevaricationComplex Inselaffe Join Date: Jun 2010 Location: Manchester Posts: 1,584 Likes (Received): 100	I don't know the inner workings of the stock market, but I imagined it would be harder to short something that just floated? __________________ Random Shuffle

May 21st, 2012, 03:57 PM	#42
WatcherZero Registered User Join Date: Jul 2009 Posts: 15,612	Now down 10%

May 21st, 2012, 03:59 PM	#43
*gothicform* Bossman Join Date: Jul 2002 Location: not london Posts: 29,147 Likes (Received): 481	why is anyone surprised? i can't be the only person to have shorted facebook and LOLed when the banks had to underwrite the IPO. i never normally short shares but anything to fuck zuckerberg up. http://www.businessinsider.com/exclu...is-own-thing-1

May 21st, 2012, 04:29 PM	#49
*gothicform* Bossman Join Date: Jul 2002 Location: not london Posts: 29,147 Likes (Received): 481	i know. it's beautiful isn't it. i can't be the only person shorting the shit out of facebook, just as i did with zynga before it.

May 21st, 2012, 05:47 PM	#51
*gothicform* Bossman Join Date: Jul 2002 Location: not london Posts: 29,147 Likes (Received): 481	if it's for sale on the markets you can short it somehow if you can't short directly there's spreadbetting.

May 21st, 2012, 05:54 PM	#52
Octoman Boo! Join Date: Nov 2006 Location: London Posts: 20,681 Likes (Received): 470	Just sell the stock. Standard settlement is 3 days. That means if I sold today I don't actually have to hand the stock over until Thursday (this is a hangover from when everything was in physical / bearer form and a few days were needed for the certificate to arrive in the post. On Thursday buy it at the lower price and hand it straight over. Incidentally, that would be a naked short. __________________ My picture threads : Venice - Naples and the Amalfi coast - Florence and Tuscany

May 21st, 2012, 05:57 PM	#53
*gothicform* Bossman Join Date: Jul 2002 Location: not london Posts: 29,147 Likes (Received): 481	can you do naked shorts on NASDAQ though?

May 21st, 2012, 06:03 PM	#54
Octoman Boo! Join Date: Nov 2006 Location: London Posts: 20,681 Likes (Received): 470	If you are an instituational client I can't see why not. Ordinary clients probably have to jump through loops, I'm not sure. There isn't much advantage naked shorting versus conventional shorting anyway. Pension funds are very happy to lend out shares to shorters in order to earn a bit of money. You could rent a block of Facebook shares off of someone like prudential for a week at a surprisingly low cost (couple of pennies per share). You can then go away and sell them and then buy them back after a week and return them. The only difference between your naked shorting profit and this is your 'rental costs' (or the haircut on the repo agreement as it is properly known between you and the pension fund) which is fractional. __________________ My picture threads : Venice - Naples and the Amalfi coast - Florence and Tuscany

May 21st, 2012, 06:29 PM	#55
PrevaricationComplex Inselaffe Join Date: Jun 2010 Location: Manchester Posts: 1,584 Likes (Received): 100	So you're still borrowing from institutional investors then? Specifically there's no retail frenzy getting in the way of you getting your hands on some FB shares? __________________ Random Shuffle

May 21st, 2012, 08:13 PM	#56
*gothicform* Bossman Join Date: Jul 2002 Location: not london Posts: 29,147 Likes (Received): 481	no. the share is now seen my main street USA as overvalued and they can't sell quick enough, hence the underwriters are having to hoover up the shares, see post 48. actually that's a yes.

May 22nd, 2012, 03:37 PM	#57
SimonTheSoundMan Unregistered User Join Date: Mar 2006 Posts: 7,433 Likes (Received): 128	Third day of trading, down 2.7 points or 8% right now. __________________ .

May 22nd, 2012, 04:02 PM	#58
WatcherZero Registered User Join Date: Jul 2009 Posts: 15,612	Ive heard $50bn listed as a serious valuation with the belief the price will fall steadily until it reaches this level.

May 22nd, 2012, 04:23 PM	#60
Octoman Boo! Join Date: Nov 2006 Location: London Posts: 20,681 Likes (Received): 470	Alas, Fuckerberg has his pot of gold. What would be fantastic would be if the share price fell low enough for someone like google to snap them up __________________ My picture threads : Venice - Naples and the Amalfi coast - Florence and Tuscany

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