Facebook IPO does not go as planned

Silly question :), how does one buy a few shares if you a normal student behind a desktop pc that has about R1000 to spare? can it be done or am i being too optimistic.

I predict that things are going to skyrocket 10-fold in the coming days/weeks after the kinks are worked out.

For the laymen - what are the requirements to invest?

I will be doing some more reading but thought i would take a jab at you wonderful folks :D.
 
Yuu said:
Silly question :), how does one buy a few shares if you a normal student behind a desktop pc that has about R1000 to spare? can it be done or am i being too optimistic.

I predict that things are going to skyrocket 10-fold in the coming days/weeks after the kinks are worked out.

For the laymen - what are the requirements to invest?

I will be doing some more reading but thought i would take a jab at you wonderful folks :D.
Click to expand...

A good question.

I checked out www.saxobank.com. Registration looks easy enough, but the FAQs are all in Greek...
 
Yuu said:
Silly question :), how does one buy a few shares if you a normal student behind a desktop pc that has about R1000 to spare? can it be done or am i being too optimistic.

I predict that things are going to skyrocket 10-fold in the coming days/weeks after the kinks are worked out.

For the laymen - what are the requirements to invest?

I will be doing some more reading but thought i would take a jab at you wonderful folks :D.
Click to expand...

FNB has a share buying thing, haven't used it, but supposed to be an easy way to buy shares yourself.

In terms of FB, it is HIGHLY unlikely the shares will go up by that amount, the company is already somewhat overvalued as it is. The technical issues only really affected the speculators who were hoping for an opening day bubble where they could buy at $38 and sell for $50+ the same day.

Simply put FB already is the dominant social network site in the world right now (excluding China), they are fairly entrenched and have their revenue streams fairly defined (OK, they are trying to get FB money going now which will boost earnings, but there will be legal issues with this too). The ROI is not spectacular for a high growth company which is already entrenched.
 
Bern said:
Simply put FB already is the dominant social network site in the world right now (excluding China), they are fairly entrenched and have their revenue streams fairly defined (OK, they are trying to get FB money going now which will boost earnings, but there will be legal issues with this too). The ROI is not spectacular for a high growth company which is already entrenched.
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Yea I don't think so. Facebook posted revenue of between $3bn-$4bn in their last financial year. Valuing that at a $100bn is not smart, hence the slow uptake. The bigger problem is that it doesn't seem like they know where they're going with the product, and that is quite scary. It emerged in the last week that Facbook's advertising model is also not working as well as it should.

Put all of that together, and you have a great social network, with very little business value. They also have a CEO who has openly admitted to putting users before revenue. You should not have to put one of those before the other, and that is indicative of the model that it'll follow for the foreseeable future. Personally I think the risk is a bit high at moment.
 
I've spent some time reading "The Intelligent Investor" by Benjamin Graham, which I highly recommend, and to quote (p139):
Our one recommendation is that all investors should be wary of new issues—which means, simply, that these should be subjected to careful examination and unusually severe tests before they are purchased.
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So I would steer clear of any over-hyped stocks, especially initial public offerings.
 
I would not touch them. The big bucks have been made.
 
Faceboob is worth between $20bn and $30bn dollars atm in my opinion... and that valuation is likely to come down after they make a few missteps and misread where the market wants them to go and they become the next myspace
 
Yuu said:
Silly question :), how does one buy a few shares if you a normal student behind a desktop pc that has about R1000 to spare? can it be done or am i being too optimistic.

I predict that things are going to skyrocket 10-fold in the coming days/weeks after the kinks are worked out.

For the laymen - what are the requirements to invest?

I will be doing some more reading but thought i would take a jab at you wonderful folks :D.
Click to expand...

Also, in this thread http://mybroadband.co.za/vb/showthread.php/426301-Online-Share-Trading, there has been some ideas floated and discussed.

Bern said:
FNB has a share buying thing, haven't used it, but supposed to be an easy way to buy shares yourself.
Click to expand...

https://www.fnb.co.za/share-investing/index.html the link and some information - from R17pm you can get your feet damp in building an investment

biometrics said:
/predicts $10 a share in a few months
Click to expand...

Why? Just curious on the reason/s for the decline.

nelwa said:
where search Engine?
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Don't be lazy. Use Google to find it. :p
 
Until the next good un comes along.Don't trust these dot.com shares/companies with intangible assets.
 
even facebook is subject to laws of nature in trade Fear and Greed.
 
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