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To: XoFruitCake who wrote (2772)	5/23/2012 7:50:57 AM
From: Flipper2058	1 Recommendation Respond to of 3249

Re: re FB - interesting to see so much blame for the FB IPO but is Morgan Stanl The Underwriting process as not a clear as it always seems. Many orders for IPO's are written as favors. Brokers get full commission and the account can flip for pennies. It is a nice kiss for the brokers. There are many reasons orders are placed and they are not always to actually buy the firm. The term is "soft dollars". Many mutual funds get research etc...in return. It is just how it works and underwriters know this, FB execs do not. Having an order book 7 times over does not mean price the sucker until it is maxed. Most of the orders likely were below the range. Obviously NOW most were playing the game. Underwriters know this too with hot deals. And many orders are forced to be "market" or don't place your order. Clients will do anything to be a part of it. It is NEVER been public, how does anyone know what is real or not? The answer is they don't and a cushion (premium) needs to be built in. If the client doesn't like the price then they should sell less shares and THEY can take the risk of a higher price down the road. Pricing at the max is asking your new shareholders to take the risk. And this is not the way to build trust since they are outsiders, not insiders. FB bagged everyone. Clear and simple. THey will have to work 3 times harder and show 3 times better results to earn the trust back for a 100 P/E/....If Fuckerberg was smart he would publically apoligize for the pricing and say he will work as hard as he can to make sure his new shareholders are rewarded. Will he? Probably not...he makes money dancing on people's privacy rights and likely has many questionable morals IMHO. Bill Gates is the same cloth and now is trying to "buy his way into heaven" via given money away.

To: XoFruitCake who wrote (2772)	5/23/2012 9:54:39 AM
From: cfimx	Respond to of 3249

Re: re FB - interesting to see so much blame for the FB IPO but is Morgan Stanl that's true. but goog also began life as a public company significantly undervalued, not overvalued like FB. goog went public via a dutch auction, which does not seek to extract the top dollar from the public. And if you recall there was a lot of confusion about how to value goog at that time. that's partly why the stock is up 7 fold. Msft has had fantastic earnings growth since 2000. but's it's stock has gone nowhere. why? because in 2000 it was way overvalued. FB is in the same boat. It has to have significant growth in EPS just to justify the current price. And it's business is already decelerating.