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Hedge Funder Who Bet $100 Million On Facebook IPO Is Furious
101–110 of 127 posts
Re: Hedge Funder Who Bet $100 Million On Facebook IPO Is Furious
#102I bought Facebook with a limit order when it went on sale to the general public last Friday, and I can confirm it was a terrible experience. Here's basically what happened: I put in a limit order through tdameritrade the night before with a max price of $44. I'm in front of the computer that morning to watch my order when the IPO starts. The price spikes up to 45, then treads around low 40s. I refresh my account. My…
There may even be permanent damage done to Facebook's reputation. Any permanent damage done to Facebook's reputation will purely be because they overvalued the IPO, overstated earnings, bought out other internet companies at inflated valuations pre-IPO, and burned those who bought at the inflated initial valuation. As to whether the trading system damaged confidence in Facebook - it's not always possible to get the d…
"anyone placing a limit order should know that they might get a vastly different price than the one they expected"
I don't think you understand limit orders.
Re: Hedge Funder Who Bet $100 Million On Facebook IPO Is Furious
#103I love this story on so many levels. Firstly there is the irony of a "blue collar hedge fund manager" There's the fact the lack of an IPO bump means Facebook equity holders are the people who made money out of it, instead of the investment banks buying at the opening and hoping to sell at the bump price. Then there's the whole "HN thinks Facebook is worthless and has the satisfaction of seeing the stock drop on the o…
> the investment banks buying at the opening and hoping to sell at the bump price.
The IBs also parcel out shares to favored clients so they can get the bump. Favored clients is shorthand for "folks who can get us more biz in the future", such as folks whose companies are likely to go public in the future....
Re: Hedge Funder Who Bet $100 Million On Facebook IPO Is Furious
#104Earlier quoted context omitted.
In fact, if an actual casino fucked up due to technical glitches, I think legally it's on them to fix it.
Nope.Vegas law says casinos are not liable for technical errors. There have been cases of slot machines setting off the giant "You Win Millions" buzzer but not getting it.
But if the roulette wheel is broken so that the ball occasionally flies off, and the casino just says "ok, everyone loses" I don't think that would stand.
Re: Hedge Funder Who Bet $100 Million On Facebook IPO Is Furious
#105Earlier quoted context omitted.
There may even be permanent damage done to Facebook's reputation. Any permanent damage done to Facebook's reputation will purely be because they overvalued the IPO, overstated earnings, bought out other internet companies at inflated valuations pre-IPO, and burned those who bought at the inflated initial valuation. As to whether the trading system damaged confidence in Facebook - it's not always possible to get the d…
"anyone placing a limit order should know that they might get a vastly different price than the one they expected" I don't think you understand limit orders. http://www.sec.gov/answers/limit.htm
I think you misunderstood his comment, though admittedly the word "expected" was probably unclear. He said "might". In other words, if the market price is $38 and you place a limit order at $40, you may get $38, you may get $39, you may get $40.
So if the price is moving (upward) quickly, you will get a price in the range you implicitly specified, but you may not get the price you had hoped for.
Re: Hedge Funder Who Bet $100 Million On Facebook IPO Is Furious
#106I bought Facebook with a limit order when it went on sale to the general public last Friday, and I can confirm it was a terrible experience. Here's basically what happened: I put in a limit order through tdameritrade the night before with a max price of $44. I'm in front of the computer that morning to watch my order when the IPO starts. The price spikes up to 45, then treads around low 40s. I refresh my account. My…
I had a similar experience, except I put my order in at 11 and was able to successfully cancel it at 12:30 as the order queue was processed. It took 20 minutes to process the cancellation, which Ameritrade can typcially do in less than a second.
Re: Hedge Funder Who Bet $100 Million On Facebook IPO Is Furious
#107I bought Facebook with a limit order when it went on sale to the general public last Friday, and I can confirm it was a terrible experience. Here's basically what happened: I put in a limit order through tdameritrade the night before with a max price of $44. I'm in front of the computer that morning to watch my order when the IPO starts. The price spikes up to 45, then treads around low 40s. I refresh my account. My…
I think you missed the subtext of the story: You got took.
Lots of shares got dumped on the muppets in the morning, they're only beginning to figure it out.
Re: Hedge Funder Who Bet $100 Million On Facebook IPO Is Furious
#108Yet another screw-up involving "real" money/assets and a "real, tested" financial system to add to my collection of "See, it's not just Bitcoin's youth or digital embodiment" rebuttals... I'm looking forward to seeing how all this plays out. I still think the stock price will go up past $38 over the next 6 months, but we'll see.
Re: Hedge Funder Who Bet $100 Million On Facebook IPO Is Furious
#109Earlier quoted context omitted.
I think you overstate the amount of useful data Facebook has on people. Just to take your example: Facebook may very well know which state I live in, but they definitely don't know whether I'm left handed, for example. On the other hand, Google might very well know this, if, say, I have searched for left handed golf clubs. Amazon would also know this, if I have bought said clubs through them. Google and Amazon almost…
ok facebook may not know if your left handed, unless your in a left handed appreciation group, but think about all the information facebook does collect on you. where you or others check in, likes, people you chat with, what you chat about, who tags you in posts and photos and who your with, not to mention all the tracking facebook does with other sites
What can they sell me based on the fact that I just liked someones wedding photo / baby picture / witty comment? I like my friends businesses and other local peoples businesses on Facebook because I want them to do well. I've never gone on to Facebook to like a business because a transaction went smoothly. I think that's weird and think my friends would too when they see it on some feed.
Re: Hedge Funder Who Bet $100 Million On Facebook IPO Is Furious
#110I bought Facebook with a limit order when it went on sale to the general public last Friday, and I can confirm it was a terrible experience. Here's basically what happened: I put in a limit order through tdameritrade the night before with a max price of $44. I'm in front of the computer that morning to watch my order when the IPO starts. The price spikes up to 45, then treads around low 40s. I refresh my account. My…
There may even be permanent damage done to Facebook's reputation. Any permanent damage done to Facebook's reputation will purely be because they overvalued the IPO, overstated earnings, bought out other internet companies at inflated valuations pre-IPO, and burned those who bought at the inflated initial valuation. As to whether the trading system damaged confidence in Facebook - it's not always possible to get the d…
We're not talking about retail investors getting fleeced by big traders. We're talking about $100M positions held by professional traders who were told to go pound sand by the exchange.
The questionable nature of many aspects of Facebook's business are not new -- an IPO investment in Facebook is by it's nature a speculative investment in the future. So was Netscape, the company that started the dotcom boom.
But unlike the good old days in the 90's, today we find ourselves in a new world where for-profit exchanges who handle billions of trades a day suddenly cannot handle an IPO. You have institutional investors stuck with seemingly illiquid positions in Facebook panicking to close positions poisoning the well and creating an atmosphere of ambiguity and fear.
You can't roll out the "investment is a long term endeavor" bunkum when the entire business model of NASDAQ-OMX and NYSE-EuroNext is now to operate a liquid market. The NASDAQ utterly and completely failed to operate the market correctly, and traders who expect to be able to trade quickly were hosed. Facebook, the traders, and the retail investor all suffered because of NASDAQ's incompetence.