Gustavo Ballvé on August 14th, 2012
Food for thought, Home, Industries, Media, Portfolio Management, Risk management, Signal or Noise, Tech

Two articles today discussing the coming end of the Facebook IPO lock-up. Yes, it is possible that (as the Bloomberg story argues) the number of shares suddenly available – and the fact that some of the potential sellers are actually making a profit even at depressed prices – could trigger a sell-off. It is also possible, as the NYT piece argues, that some of the shareholders are long-term oriented or strategically invested – for instance, Microsoft – and could hold on, and then the “non-event” could actually trigger a rally. As one investor put it, in what has to be the irony of the year, “when does Facebook gets stupid cheap?”

Cheap, I don’t know. Stupid, on the other hand, seems to apply to the whole episode.

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