Friday, May 18, 2012

Facebook's IPO

There is a strong possibility that the Facebook IPO marks the beginning of the next big leg down in this secular bear market in stocks, which began in earnest in early 2000.  While the business of model of Facebook has validity, the value placed on it by investors is entirely absurd.  The only mechanism that will prevent a big flush in the stock market is the commencement of a massive QE3 initiative by the Fed.  If this should occur, gold will do a moon shot and purchasing value of the dollar will futher deteriorate.

(Please note:  technically this is not an IPO for Facebook.  Facebook sold shares to the public via the OTC market about a year ago at $15.  This was technically a secondary offering in order to enable the insiders at Facebook to unload appallingly overvalued shares on a wider public audience.  This means anyone who has their money stupidly invested in a general stock mutual fund or pension 401k plan.  This means most of you, as represented by your brain-dead financial advisors).

Re:  About Facebook’s IPO (sourced from cyberspace, I did not write this)

Dear Potential Investor:

For years, you’ve wasted your time on Facebook.  Now here’s your chance to waste your money on it, too. Tomorrow is Facebook’s IPO, and I know what some of you are thinking.  How will Facebook be any different from the dot-com bubble of the early 2000’s?

For one thing, those bad dot-com stocks were all speculation and hype, and weren’t based on real businesses.  Facebook, on the other hand, is based on a solid foundation of angry birds and imaginary sheep.  

Second, Facebook is the most successful social network in the world, enabling millions to share information of no interest with people they barely know.

Third, every time someone clicks on a Facebook ad, Facebook makes money.  And while no one has ever done this on purpose, millions have done it by mistake while drunk.  We totally stole this idea from iTunes.

Finally, if you invest in Facebook, you’ll be far from alone.  As a result of using Facebook for the past few years, over 900 million people in the world have suffered mild to moderate brain damage, impairing their ability to make reasoned judgments.  These will be your fellow Facebook investors.

With your help, if all goes as planned tomorrow (i.e. this morning) , Facebook’s IPO will net $100 billion (actually $104 billion).  To put that number in context, it would take JP Morgan four or five trades to lose that much money.

One last thing: what will, I, Mark Zuckerberg, do with the $18 billion I’m expected to earn from Facebook’s IPO?  Well, I’m considering buying Greece, but that would still leave me with $18 billion.  LOL.

Friend me,

Mark Z


  1. I thought it was cute that Facebook was sued today for $15 billion for the surveillance they do on your internet usage when you are logged off of Facebook.

    You should point out too that this is not really an IPO. The real IPO took place a year or so ago at $15 and this is really a public secondary.

    1. Ya good point on IPO vs. secondary. I'll point that out if Mark friends me on FB.

  2. Many elite insiders invested in Facebook so any stock market crash was not going to occur until after its IPO (or public secondary as above), in order to allow them to cash out. Many factors for this date of May 18, 2012 along with other "coincidences" relating to its founder and with associated numbers appear to point to a ritualistic event. So the gist of your article about it marking the next down turn was fairly spot on despite not realizing the insidious and nefarious intentions.

    There remains a fairly good probability of a near term "flash crash" that will just be the test run before a massive stock market collapse that occurs much later on. Timing is difficult to determine when it actually happens, though.

  3. I found them tracking me even after closing down my profile years ago ..funny thing was I was using a blocker called Ghostery ...Then I noticed

    Follow us on twitter
    Friend us on facebook

    WTF lol

  4. Facebook's shares are now trading 12% below the IPO level.
    My guess is they will drop further over the next 2-3 months.