It is in basic terms impossible to have not heard about Facebook's I.P.O. whether you were looking for it, just watching some news on T.V. or popping out in a window on the internet. It has been 8 days since the start of this initial public offer, meaning that for almost 2 business weeks Facebook is pushing stock on the market.
In all this time, we saw a reflection of what any straight headed analyst thought: the release of the stock was overpriced. So now we have people with millions of dollars (or whatever currency you prefer) in loses, all because they were, in lack of better terms, tricked by an over-reaching company. The public perception stays low even with the announcement of an Facebook phone (likely to be named FACEpalmBOOK looking at all this), because it's not that what people think about when a company that you invested in proves to be a pot hole. Morgan Stanley is also taking a huge image slap, and their stock goes down as usual but now in a more accelerated manner thanks to their relation to the above mentioned I.P.O.
There are rumours that the financial service company is trying to pull up the Facebook stock using massive buys at the end of every session and even inside trading is speculated. I wouldn't even be surprised. These are risky and illegal moves that desire to hide behind a bush or a rock,or whatever might be better to use as a cloak of shadows something that we all know; Facebook's I.P.O. was poorly managed, overpriced and full of faults. In so many ways that it might be one of the most tragic I.P.O. that existed.
We'll see how the stock will evolve, or if we are to believe the data, not so much, in the coming days. At least, until the first already announced lawsuit will be launched by investors against the company.
Because what market high-movers hate more that loosing money, is for them to be pictured as clowns.
Grey Shaded Business
Thursday, 31 May 2012
Tuesday, 29 May 2012
Bankia turmoil
One of the biggest focus at this point in the economic world is the Spanish bank Bankia. A bank so powerful and large... and in trouble,that the entire Greek bad bank sector has a lower need for capital. Now in all this turmoil, Bankia manages to squeeze money from the European Central Bank to cover it's gaps, and if you have a little idea about what's happening within ECB, you also know that the cash cow there is Bundesbank, the German central bank. In this colourful dance, the party stops when Bundesbank stops playing.
Bankia needs money, and usually it can make use of the ones coming from companies and people using their services along with the bonds that carry Bankia banner. But they just need way more than that and fast. As a collateral measure, Bankia has assets such as real estate,down to football players which can be sacrificed if ECB asks. The stock went down by 350% in the last year and it keeps struggling. But in my opinion, and I'm not the only one having it, despite the downgrade in rating done by the ones analysing the depths of the problem, Bankia is now on a "buy" stand. Meaning that if you are bored, like the thrill of the hunt and enjoy the stock market, now is the time to add some Bankia to your portfolio. I am convinced that this bank won't fall, and that it will pull back up. Certainly not as fast as it fell, and not without sacrifices, but time will tell the whole story.
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