Hungary Jack wrote:I wish the business banking options for small biz were better. I have my business checking, merchant processing, credit cards all with Chase, not to mention my home mortgage. I have shopped some competitors, and they don't offer the breadth of services that Chase can offer. Kinda sucks.
So in other words that competition/capitalism thing isn't providing the consumers a good and efficient value?
Brings me back to why the SEC ever let banks merge into TBTF companies?
Hungary Jack wrote:I wish the business banking options for small biz were better. I have my business checking, merchant processing, credit cards all with Chase, not to mention my home mortgage. I have shopped some competitors, and they don't offer the breadth of services that Chase can offer. Kinda sucks.
So in other words that competition/capitalism thing isn't providing the consumers a good and efficient value?
zzzing.
And love the credit union. They are closest thing to what we used to think of as a bank. We've done our mortgages, refis, and occassional car loan thru them -even when the rates were slightly better elsewhere. I've taken a pass on their 0.4% CDs though. Surely they don't make money on my meager free checking/savings - though that 3-5 day float they get when we pay a bill online might be helping the CU profit more than I think.
In this case no. There is not enough competition banking, or at least business banking. Things are probably different on the consumer mortgage side.
And your zing is illogical. Without a hostage there is no ransom.
This is a huge problem, for one big reason:
Selective dissemination. Earnings forecasts are material information, especially when they are prepared by analysts who have had privileged access to company management. As lead underwriters on the IPO, these analysts would have had much better information about the company than anyone else. So the fact that these analysts suddenly all cut their earnings forecasts at the same time, during the roadshow, and then this information was not passed on to the broader public, is a huge problem.
They meant to tell you guys about the forecast cut. They really did. They were just too busy taking everyone's money at the time.
I have little sympathy for anyone that got involved in an IPO without knowing exactly what they were doing. Facebook was way overvalued, and still is by a lot; a small revenue cut makes little difference.
What facebook is going to do with the $100B they just got I have no idea. How are they supposed to use that to generate more income? They don't have any products, they're already all over androids and iphones, there is a sign in with facebook link in almost every website, but no one uses that because they don't want their privacy screwed with. I just don't see how they turn facebook into much more than a steady stream of ad revenue overtime, yet its being priced at unparallelled growth just because they have access to 1/8th of the world's population. Any kind of development and venture with that $100B is a new segment of their business and is anything but guaranteed to bring in 100 times its development cost... which is what it debuted at. The only way you would break even off the IPO on actual fundamentals is if over the next few years facebook somehow turns your $38 into $3,800 or more. Good luck.
AdmiralKird wrote:I have little sympathy for anyone that got involved in an IPO without knowing exactly what they were doing. Facebook was way overvalued, and still is by a lot; a small revenue cut makes little difference.
What facebook is going to do with the $100B they just got I have no idea. How are they supposed to use that to generate more income? They don't have any products, they're already all over androids and iphones, there is a sign in with facebook link in almost every website, but no one uses that because they don't want their privacy screwed with. I just don't see how they turn facebook into much more than a steady stream of ad revenue overtime, yet its being priced at unparallelled growth just because they have access to 1/8th of the world's population. Any kind of development and venture with that $100B is a new segment of their business and is anything but guaranteed to bring in 100 times its development cost... which is what it debuted at. The only way you would break even off the IPO on actual fundamentals is if over the next few years facebook somehow turns your $38 into $3,800 or more. Good luck.
So....in short, what they did was wrong (and I'm going to add should be illegal), but because only stupid peons (as evidenced by buying facebook in the first place) were affected it's no big deal.
Yeah. The $100B FB valuation is all about growth, so a revenue cut is a big, big deal. What a cluster [expletive] this IPO is turning out to be.
They netted less than $18 from the IPO, so it's not like they are sitting on $100B in cash. But they could declare a special dividend for shareholders (half joking), which would be a nice cash lump sum for MZ. They obviously won't do that. But you have to wonder what projects they could invest $18B in that would generate the returns the shareholders seek.
My guess is they will buy a few more companies (and overpay for them).
Well, when you're dealing with FB and growth and a revenue cut being a big, big deal...that's like saying you want to travel from earth to Tau Ceti instead of Alpha Centari.
AWvsCBsteeeerike3 wrote:
So....in short, what they did was wrong (and I'm going to add should be illegal), but because only stupid peons (as evidenced by buying facebook in the first place) were affected it's no big deal.
It's a financial rumors blog. They say the estimate changed "mid roadshow" which means it was cut on Friday or Monday before the IPO, probably a full business week before the stock went live, but they try and make it sound like it was right before the bell sounded and the stock opened. I highly, highly doubt that estimate change would have effected almost any individual investors' (speculators') decisions.
AdmiralKird wrote:Well, when you're dealing with FB and growth and a revenue cut being a big, big deal...that's like saying you want to travel from earth to Tau Ceti instead of Alpha Centari.
AWvsCBsteeeerike3 wrote:
So....in short, what they did was wrong (and I'm going to add should be illegal), but because only stupid peons (as evidenced by buying facebook in the first place) were affected it's no big deal.
It's a financial rumors blog. They say the estimate changed "mid roadshow" which means it was cut on Friday or Monday before the IPO, probably a full business week before the stock went live, but they try and make it sound like it was right before the bell sounded and the stock opened. I highly, highly doubt that estimate change would have effected almost any individual investors' (speculators') decisions.
Why wasn't the information given to everyone instead of a chosen few?
It's weird to read about the power of markets, and then to read a short time later that "Oh, yeah, that stock price was ridiculous."
Facebook has a massive database of personal information that can be used for pretty much anything. It's not as fashionable to go start a hedge fund as it was five years ago, but there's money in it when you have that kind of information edge.
