What Happens When An Idiot Market Finally Gets The Post-Euphoria Hangover
Nowhere is the 'get-rich-quick', 'fundamentals-are-for-suckers', new normal 'idiot' market more apparent than in the "mistakes" investors have made in Twitter's IPO (TWTRQ), Google's NEST acquisition (NEST), and now Facebook's Oculus purchase (OCLS & OVZT).
Recall our post from two days ago "The Sheer Idiocy Of The Markets In One Chart - Oculus Edition" following FaceBook's acquisition of Oculus VR:
... and fast forward to today:
Shares of Oculus Innovative Sciences (OCLS), a healthcare company that makes products for treating acute and chronic wounds, are trading higher after Facebook (FB) acquired another company with a similar name but very different business.
Facebook announced that it has agreed to acquire Oculus VR, which is is based in Irvine, California and makes the the Oculus Rift, a virtual reality headset. Facebook will pay about $2B for Oculus VR, including $400M in cash and 23.1M shares of Facebook common stock valued at $1.6B.
Oculus VR is not related to Oculus Innovative Sciences. A company spokesperson told The Wall Street Journal's MarketWatch that the mistaken identity "might play a part" in today's move higher.
Another company, Oculus VisionTech (OVTZ), clarified earlier in a press release that there is no material change in the affairs of the company and the company is not associated with the transaction involving Facebook and Oculus VR.
Oculus VisionTech, which is based in Vancouver, designs and markets technology for delivery of digital media and trades on Canadian exchanges and on the OTC markets with the ticker "OVTZ."
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