Saturday, January 28, 2012

Facebook Prepares To Go Public...?

Soo my corporate people love it when I talk like this(lol). Recent news has surfaced from the Wall Street Journal that the mega social media site is preparing to file papers next week for an initial public offering(IPO). Just the thought alone has investors everywhere anxious and excited, being that this could be the biggest IPO in trading history , instantly allowing shareholders to become millionaires.

According to the Journal Facebook's value is somewhere between $75 to $100billion. The site is the world's largest social media site with over 800 "friends" or members. The company has grown internally as well, with about 3000 employees now today. Rumor has it that Facebook earned  $1.5 billion in operating profits on $3.8 billion in revenues last year.

Upon offering the IPO is estimated to raise $10 billion. Setting up a strong competition between investment banks Morgan Stanley and Goldman Sachs. Other investors all over the world will be salivating at the mouth at the chance to catch the company at its lowest price offering.  While no date specific date has been sent for the come out party, rumors have May as the expected month. One thing that is for sure is, The New York Stock Exchange trading floor will be in a frenzy!...So you may ask why now?

Its very well possible that Facebook has no choice in the matter being that they now are subject to the "500 shareholder rule." Which states which requires companies to disclose financial information by the end of the first quarter the year after the company tops 500 shareholders.

We bring you this information, hoping that you can see the opportunity here. If you find the time do your own personal research on major companies producing IPOs. Look at the price per share on the first day and follow how the price most times increases a substantial amount within the first few days of offering. The price may drop back down or stabilize to a slightly higher figure, still there is much room for a profit to be made dealing with a company of this stature.

3 comments:

  1. Grinding In All My TimeJanuary 28, 2012 at 7:05 PM

    Yes we love it when u talk like this...been too long. This shall be a gift to investors LOOK AT EVERY MAJOR AND MINOR BUSINESS, AND PERSON WHO DOESNT HAVE A FACEBOOK PAGE? Yesss this is good news, if you need help seek a finacial advisor we must ALL get in on this IPO im thinking shares will be no more than $20 each. I expect it to reach 42 at least withinn 4days. Think about it Good look in the info You did ya job rest is up to the people

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  2. pretty cool.. so this means this will be the first time that people can buy shares of facebook? i didnt know this

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  3. When the open on the stock market I want in!!!

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