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Early Facebook (FB +5%) investor and director Peter Thiel discloses he sold 20.06M shares on...
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Monday, August 20, 2012, 5:23 PM ETEarly Facebook (FB +5%) investor and director Peter Thiel discloses he sold 20.06M shares on Thursday and Friday, following the end of Facebook's lockup expiration. Thiel, who obtained his shares at an adjusted price of $0.004, had converted 9M ahead of the expiration from Class B to Class A to facilitate their sale. He now holds only ~8M Facebook shares, compared with over 44M before the IPO. (more on FB)
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This news story has 16 comments:
Once 2 billion shares are afloat, FB will have to earn $3 to $4 billion just to support the stock at a $20 level. With a murky business model, it's going to take FB at least 4 to 5 years to produce those kinds of earnings.
Let's face it; the majority of investors are either impatient or fickle. Do you really think investors will sit on FB stock for 4 years and watch other REAL value stock opportunities float by? Even more ominous is the possibility that FB will not even exist in 5 years.
P.S. - Warren Buffet today is trimming BH positions in darling value stocks JNJ, PG, and KFT. What does that say about "riding the storm out with FB"?
Even if he thinks it's a slow climb back to $30, it or any of us would probably still sell. Especially him... he probably wants to free up that cash for a much higher potential ROI. If he was that negative on FB, he'd likely sell the rest of his shares, too.
It's certainly not good news. It means he doesn't think it's going back to 30, let alone 40, any time soon. But I think a lot of people in the same position would cash out, too. Even at $20, he just made a FUKTUN of cash
"Better to flee from death than feel its grip." - HOMER, The Iliad