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One of the reasons for Facebook's (FB) less-than-stellar performance today may be due to the...
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Friday, May 18, 2012, 6:40 PM ETOne of the reasons for Facebook's (FB) less-than-stellar performance today may be due to the fact that the system became so clogged that traders backed away, says CNBC's David Faber. The big mid-day drop - from $40 to $38 - apparently happened because the Nasdaq temporarily stopped taking orders at one point, which created enough uncertainty that traders on many desks stopped trading the shares altogether. The SEC has launched an investigation into the issue. (video)
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Of course then again, I am sure people said that about GOOG and plenty of other long term bellwethers...
The problems it caused across the system were amazing, though. What was it, 20% retail involvement? That's amazing and I hope it's a sign of things to come as the younger, new middle class comes in. Users of some online firms experienced across-the-board blackouts. FB was a wash but I like it; I hope systems catch up and its involvement is a sign of things to come... a much more engaged and democratic market than these people's parents experienced with their dysfunctional 401k's. We'd now only have ourselves to blame. Places like Goldman Sachs might be reduced to grocery store delivery guys... wouldn't you laugh at someone who tried to tie an astronomically high premium for delivering a bushel of tomatoes?
If you compare http://bit.ly/n8JSSE & http://bit.ly/Kmqr7x ... and you didn't know what companies the graphs belonged to, you'd certainly reach the conclusion that the second is better, way better.
Yet, the company with no profit margins whatsoever is the one with a P/E of 175... and the more profitable company has a P/E of 9.35?
In theory, this makes no sense whatsoever. But we all know speculation dictates the values... nothing else matters.
So yeah, $FB can trade around $38, around $380 or $3.8.
I'm not willing to gamble this much. :-P
By going down from 42+ to 38, they hurt themselves BIG TIME because a high profile stock like this elicits a huge retail reaction. Had the soulless dirtbags at Goldman thought about what they were doing 1-2 pm, and thought about going at least 45 like was expected, they might have done well for the day. But no.... the quota was to keep it at 40. Such worthless, unresponsive losers and all higher ups to their chairman should be sent through a wood chipper.
Also there were many large orders placed way above the current price, orders that could have never been filled since it was in the millions of shares first of all and second they were at $20, $30 above current price (think 70). This was done to drive the price up so whoever were not looking at the tape, unsuspecting retail investors would start bidding up the price. Is this legal? CNBC"s Tausche reported the same rumors of fake orders on FB. I have seen them before on other stocks, especially one with low vol. Buyer beware. Wall Street is a high tech poker game of bluff, the game is often rigged unless you are on the inside and the first to get in and the first to get out.
Also there were many large orders placed way above the current price, orders that could have never been filled since it was in the millions of shares first of all and secondly there were $20, $30 above current price (think 70). This was done to drive the price up so those not looking at the tape, or don't have level II, unsuspecting retail investors would start bidding up the price. Is this legal? SEC, please answer. CNBC"s Tausche alluded to the same rumors from other traders of fake orders trying to drive the bid price up. I have seen them on other stocks, especially those with low daily vol. Buyer beware. Wall Street is a high tech poker game of bluff, the game is often rigged unless you are on the inside and the first to get in and the first to get out, you will be holding the bag
Investment in a semiautomatic weapon to take down the seditious criminals at GS is much less than investment in 100 shares they pawn on the public. Bankers are by definition a parasitic class on society, and it's prime time to keep them in line.
When will our trading laws change to reflect contributing for sharing ownership or simply not. The notion that battalions of individuals and brokerage firms can decide to gang up and destroy business for their personal gain needs is ludacris.