Facebook is falling like a rock despite the fact that there's a short sale restriction on the stock until at least tomorrow. Why is there a short sale restriction in the first place? Exactly what is wrong with allowing market forces to find the true market price? Well, you can run but you can't hide, Mr. Market equilibrium avoider.
Go to the 13:55 marker for some prophetic words spoken on Facebook's offererings. Take note that this interview was conducted in early January...
BoomBustBlog subscribers have been thoroughly versed in Facebook's true value for over a year, As I Promised Last Year, Facebook Is Being Proven To Be Overhyped and Overpriced! [3] Now that Facebook Finally Faces The Fact Of BoomBustBlog Analsysis [4], let's pull out that simplified unlocked version of the valuation model used for our Facebook report (model is available for immediate download to pro/institutional subscribers) - Facebook Valuation Model 08Feb2012 [5]. Here is a screenshot of my personally updated version of the model.
All paying subscribers can download the addendum here -
FB IPO Analysis & Valuation Note - update with per share valuation. [6] Here's a quip from the last line of the report:
"As of the writing of this addendum, Facebook is trading at $33.83, a day after debuting at $38.This utter disappointment and gutting of the muppets is exactly what our research has anticipated. From a strictly fundamental perspective, Facebook shouldn’t see its IPO price anywhere within the foreseeable future!".
The general subscriber access full forensic opinion is still available, FaceBook IPO & Valuation Note Update [7] in addition to the short update above. Of course, higher level subscribers should feel free to play with the model above as well. It is recommended that subscribers (click here to subscribe [8]) also review the original analyses (
[9]FB note final [10] 01/11/2011).
Here's where I broke it down on Capital Account
I also happened to do the same on the Max Kesier show...
I discussed Facebook on the Peter Schiff radio show [11], the Facebook excerpt is below...