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MitchSand
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  • Facebook V. Other Recent IPO Stocks 0 comments
    May 29, 2012 6:48 PM | about stocks: FB, IRG

    Facebook (NASDAQ:FB) going public came with lots of media attention, especially when it went down. Now if you compare it to other recent stocks like Ignite Restaurant Group Inc. (NASDAQ:IRG) you see a very different occurrence. When Facebook went public before it was having problems setting its IPO price. They then decided to buy more shares and raise it to $38. The reason they did this because it was expected for the stock to rise quickly. But if you look at other new stocks like Ignite Restaurant Group, it was much lower of a price and much fairer, it might even be called under priced (went out to the market at $14). Since this stock had a lower IPO price it had a better chance to go up then Facebook. And that is clearly shown by the steady rise to around $18 in the same time it took Facebook (which had an overpriced stock) went down to $31. But this surprised everyone as it was expected to skyrocket. But the flaw most people made when Facebook went out into the market was, looking at the appearance and not the facts. The name Facebook by the media got over glorified and therefore gave Facebook the chance to over price the IPO price. That is not a good thing to have a stock that is over glorified and with an over priced stock, it is a path for disaster. While Ignite Restaurant Group had a well priced, and good company management which is allowing it to rise unlike Facebook.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: FB, IRG
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