Investing 102

[Vegas69]

Originally Posted by GregWeld

FACEYBOOK


Okay -- I've had about a zillion emails / PM's / Calls asking if "I should - could - would" buy into the FACEBOOK IPO. So here's my take on it - it's GAMBLING - it's HYPE - but it also appears to be BIG....

SO because of my "accounts" -- I've been "allowed" to get into the IPO at offering price ($28 to $35) one of my brokerages. I have asked for 2000 shares. Remember that this is 'over subscribed' so I might not get any - I might get 100 I might get 10.... I'll get what I get and pay the "set" price at OPEN.

I would NOT buy RETAIL -- in other words --- the first trades AFTER the IPO set price! That could be 60 - 70 - 80 - 100 who knows -- but since I can get in at the set price - I stand a chance of having a gain.

I'm sharing this - as I do my other "investment life" as a "here's how all this crap works investing 102 experience". So as usual -- this is a "it takes money to make money" moment. I wouldn't be allowed into the IPO if I didn't already have a substantial account! The guy that needs it the least - gets the most... I don't happen to like that morally but it is what it is.

This is expected to price TOMORROW --- so you can all live vicariously and see if I sink or swim. I don't like Facebook - I don't use it - but EVERYBODY but me does... I think it's a fad but I'm not against making money - regardless of what I think.

Seems like a strange investment for a website you've never experienced. What's your alias? John Doe Jack Smack Rodney Snodgrass??

[GregWeld]

Originally Posted by Vegas69

Seems like a strange investment for a website you've never experienced. What's your alias? John Doe Jack Smack Rodney Snodgrass??

"Tittykaka"


I don't think I'd refer to it as an "investment".... I'd call it gambling. Which is why if it pops - I'll dump some. And I highly doubt I'll get the 2000 shares requested - but if I did - that would be 70 grand... My thinking is I might get 100.

BTW right there is the lesson for "102" -- while 70K seems like a lot -- it's money that % wise for me would be like finding a nickel in the street... so if I lost it - I wouldn't notice. Most everyone that's asked me about FaceyKissyBook really can't afford to gamble like that and shouldn't be invested in it yet they're the ones that will have to pay retail - are the most eager to jump into it - and are the least sophisticated investors. AKA: The ones that should not be buying it - but will anyway.