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Diary Of An IPO: S-1 Craziness

I just read that Facebook may raise the price range of its IPO and, if it does, will be filing yet another S-1 in the coming days. I have been blogging about the baselessness of the proposed valuation of Facebook since prior to the roadshow commencing. To sum up almost 10 blogs ( - I believe this might just be one of the most egregious investor abuses and/or insanity in the past several decades.

Why? Facebook, in its initial S-1, amended S-1 and amended, amended S-1 filed this week in no way justifies its nearly $100 billion valuation. And, now it's being reported that it might increase its valuation by 20% and, as a result, will have to file yet another S-1???

The craziness is that nothing in the S-1 has changed in regards to the company's business or growth plan/strategies. Indeed, one of the significant changes in the most recent S-1 is that its mobile strategy is problematic and that the company may struggle to monetize any such mobile strategy and achieve profitability.

Bottom line, a near $100 billion valuation based on this is a far reach - a near $120 billion valuation is absurd. Investors beware. Stay tuned . . .