Mark on July 28, 2012 ·
Novice question. Where can a novice go with, say €500 or €1,000 to make a purchase of FB shares without having a large % taken in transaction fees, etc? Thank you.
Jose on July 29, 2012 ·
It is a very valid argument. The way I see the things is different through.
I believe Facebook is a pyramid scheme. The people that get early in the game make a lot of money from the people that come later. Today the only significant transfer of money is from the base of the pyramid to the top, not from the market. IMHO any company that makes money just from their investors is in bad shape.
FB offers a great service at $0 cost, well not really, at negative cost as each customer cost money from investors. I assert you I could get a lot of “customers” at this price.
That those customers will stay once they are told to pay more and more(one way or another, with money or their privacy being sold to governments and big corporations) is another story. There will be alternatives for sure in the future.
FB can’t grow because is so big and people ignore their ads.
FB was overpriced more than 10x times, so the dynamic is a vicious cycle down. If the best employees start selling their stock when they let them (August the 19 th) for getting the money and creating their own companies, facebook will be over. 20 somethings geek mercs don’t stay code diving for a company forever. One day they start thinking about raising a family and chilling out.
Jose on July 29, 2012 ·
PS: I bought shares from Microsoft and Google IPOs. They were radically different to FB.
Adan on July 30, 2012 ·
You’ve added to a losing position. So yes, you’re not a trader. Are you making a killing on your Spanish bonds yet? Oh yea, interest rates in Spain keep going up! Thanks for your tips, Martin..
Jose on July 30, 2012 ·
Mark on July 30, 2012 ·
Still interested in getting a reply to my query if anyone wants to advise?
Amaury on July 30, 2012 ·
Mark, I don’t know how things work in Europe, but here in the US I would advise someone in your position to at least consider the simple task of opening an account with an online broker such as TD Ameritrade, and you would pay a one time commission of around $7.99 for as many shares as you’d like to purchase at one time. No other costs will be associated with such a purchase with some brokers, and I think TD may be one of them. Some online brokers charge a monthly maintenance fee that can be offset by any commissions that you pay them. Let me know if you have any additional questions, and I’ll do my best to help.
Diego on July 31, 2012 ·
I also have a few but not many, an important number of shares from Facebook employees will free up in the coming few months, and could make for a better buying opportunity.
Interesting article on this:
jb on August 2, 2012 ·
Mark, in Spain you can trade shares using almost any bank (you trade via internet), fees for trading are not tipicaly high but take a look to custody fees: they can be high. Usually e-banks have much better conditions, and even there are some that do not charge custody fees, such as ING Direct (they are based in Netherlands but licensed to work in Spain as well). You can also open an account with a broker in your country or another one (UK etc. be careful which one you choose, be sure they are licensed by the regulators and thay have good reputation).
Ps. better for you to choose a specialized forum for novice trading and ask anything you need there, internet is plenty of that… You won’t be off-topic and find a lot of people sharing their experiences and giving you advice on banks/brokers etc.
Mark on August 2, 2012 ·
jb and Amaury, thank you both for your responses, much appreciated, very kind of you.
Gurusblog on August 8, 2012 ·
Martin I agree with your analysis. I attached you the calendar on FB lock shares. Too much pressure for the next 8 months.
Noam Gonen on August 15, 2012 ·
Long term I tend to agree, the critical mass accumulated has to be worth north of 20. However, I think you’re missing a transient bump that would have allowed you to get it for much cheaper. So I’d wait till XMAS, after bump, lazy market and do your killing then. What do you think???
Reasoning: This Thursday, 271.1 million shares become freely tradable. Another 133 million get freed up between now and November 13, along with 55 million RSUs and 55 million shares subject to employee options. The real whopper is on November 14 when 1.197 billion additional shares are greed for trading, along with another 20 million shares tied to RSUs. Next May, another 47.3 million shares held by Mail.ru and DST Global become free trading. That is – what’s the word? – a crapload of additional supply. And in case you happened to take Econ 1A, you can draw a basic supply and demand curve – which tells you that when supply increases, prices fall. (quoted from Forbes)
Pensamientos Neoliberales on August 16, 2012 ·
I guess you bought some more today, no?? FB@20$…
Leave a Comment
You must be logged in to post a comment.
Gregoire on July 27, 2012 ·
Martin, thanks for sharing your interesting logic.
I think even doubling revenue to lets say 2bn per quarter with current cost of revenue does not justify such a high valuation, no?
Also i feel that more and more people ‘dislike’ fb, they only keep using it because there is no real alternative yet. this seems to increase the chance to get myspaced.