Facebook (FB +2.7%) is adding to Friday's gains, though shares remain down 19% from pre-earnings...


Facebook (FB +2.7%) is adding to Friday's gains, though shares remain down 19% from pre-earnings levels. The company's lock-up expiration begins on Aug. 15 (10% of outstanding shares), and additional releases arrive on Oct. 14 (9%) and Nov. 13 (49%). As Henry Blodget notes, Facebook's selloff will make it tough for the company to pitch a secondary offering to limit volatility, and could also prevent it from paying a $2.5B-$3B tax bill related to restricted stock by selling some of the shares.

From other sites
Comments (3)
  • winningtrader
    , contributor
    Comments (2459) | Send Message
     
    Farce Book going strong! This should help the insiders sell more shares at great prices after the lock-up expires.
    6 Aug 2012, 02:21 PM Reply Like
  • raviunnam
    , contributor
    Comments (130) | Send Message
     
    There are a lot of great companies with proven track records at much lower valuations.
    why buy at $22 when you can buy in Nov for $10 and much lower in single digits next year. ??
    The sheer size of this company's float is mind boggling... insiders get the FB shares for like 6 cents ( Yes ... that is what Mr. zuckerberg pays for his stock options ) ... the stock split 5 to 1 twice before IPO... the cost for early investors is below $1. what do you think they will do when they have the first chance to convert their stocks to cash... take a guess....
    6 Aug 2012, 04:45 PM Reply Like
  • rosputko
    , contributor
    Comments (3) | Send Message
     
    Raviunnam, I'm with you on this one. When I think of Facebook I think "short that stock"; especially in Nov when FB hits its iceberg on Nov 13 when the 49% of its stock float will be unleashed. I'm betting on the stock hitting the $10-$14 range. What do you guys think it will end up post Nov 13?
    6 Aug 2012, 05:26 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs