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Early Facebook (FB +5%) investor and director Peter Thiel discloses he sold 20.06M shares on...

Early 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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Comments (16)
  • Econdoc
    , contributor
    Comments (2944) | Send Message
     
    strong vote of confidence
    20 Aug 2012, 05:33 PM Reply Like
  • uberchurl
    , contributor
    Comments (34) | Send Message
     
    With nearly 2 billion shares to be unlocked in the next 6 months, the FB IPO is starting to resemble a Ponzi scheme. With each wave of unlocks, the employees and other insiders will dump their shares and grab some dough. Once the smoke clears, the man on the street will be left with a vaporized 401k or a penny stock.
    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"?
    20 Aug 2012, 06:15 PM Reply Like
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    With a murky business model.......its a fad model....it will be gone in three years....unless it is taken over by the Government..lots of good easy access spying for them..
    20 Aug 2012, 06:23 PM Reply Like
  • Sammy Lee
    , contributor
    Comments (306) | Send Message
     
    i'm still waiting for the fuckbook ipo.
    20 Aug 2012, 07:22 PM Reply Like
  • WINTERMUTEv04
    , contributor
    Comments (105) | Send Message
     
    I don't think it's that bad of a sign....

     

    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
    20 Aug 2012, 07:43 PM Reply Like
  • WINTERMUTEv04
    , contributor
    Comments (105) | Send Message
     
    BTW I don't own FB or plan to buy FB... I wouldn't buy it unless it fell to 10-14... So, I'm not a big fan of it. Just saying, this doesn't really change my opinion of it in a negative manner.
    20 Aug 2012, 08:45 PM Reply Like
  • TruffelPig
    , contributor
    Comments (4091) | Send Message
     
    So, will he be fired as director now?
    20 Aug 2012, 08:40 PM Reply Like
  • sethmcs
    , contributor
    Comments (3327) | Send Message
     
    Let me see. If I had 28 million shares of a stock with a cost basis of $.004 that I could sell at $20.00 what would I do???
    20 Aug 2012, 10:09 PM Reply Like
  • Skyler Greene
    , contributor
    Comments (274) | Send Message
     
    While I'm certainly in the "Facebook bear" camp, it's important to keep in mind that Thiel's decision to cash out was made pre-IPO. From the SEC document: "The sales reported on this Form 4 were effected pursuant to a Rule 10b5-1 trading plan adopted by the reporting person on May 18, 2012." (For more on Rule 10b5-1, see: http://bit.ly/ND5j0I)
    20 Aug 2012, 11:58 PM Reply Like
  • padresguy
    , contributor
    Comments (168) | Send Message
     
    Looks like he knew back then it was a ponzi scheme. Also he could have canceled the sale without insider violations. But then again FB is one website away from becoming the titanic, why wouldn't he sell.
    21 Aug 2012, 04:09 AM Reply Like
  • SaltyDog62
    , contributor
    Comments (741) | Send Message
     
    Not bad on what... a 500k investment...
    21 Aug 2012, 12:26 AM Reply Like
  • phil1938
    , contributor
    Comments (2) | Send Message
     
    I am a retired auto wholesaler [56 yrs] just looking for something to do with my time the market and the ecomany seem to be playing the same game thank god for the usa auto manufacturing business's keep it up people
    21 Aug 2012, 06:03 AM Reply Like
  • WINTERMUTEv04
    , contributor
    Comments (105) | Send Message
     
    ......ok
    21 Aug 2012, 05:21 PM Reply Like
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    Phil...stick with what you know....you know autos...and probably know the skinny on who is doing well and who is not..invest your money in that...
    21 Aug 2012, 08:52 AM Reply Like
  • uberchurl
    , contributor
    Comments (34) | Send Message
     
    Once all the shares are unlocked and the employees, insiders, and institutional investors are free to dump stock and grab some dough, watch the media. The puff pieces, stock-prop-up stories, and Zuckerberg cheerleading articles will disappear.

     

    "Better to flee from death than feel its grip." - HOMER, The Iliad
    21 Aug 2012, 10:48 AM Reply Like
  • DanoX
    , contributor
    Comments (2708) | Send Message
     
    Hey Moe! Wise Guy! Doh...
    21 Aug 2012, 11:58 PM Reply Like
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