Wednesday, August 29, 2012

More Pain to Come for Facebook




Fromt the WSJ: Facebook Inc.'s initial public offering and its subsequent stock-price tumble have been the subject of so much scorn, outrage, controversy, criticism and ridicule that to add anymore is just piling on. But give it a couple of months. By then, you might think there hasn't been enough criticism. That is because Facebook is still overpriced and it is about to be walloped by a flood of shares hitting the market.

As the stock stabilizes from its latest wave of insider selling, an even bigger block, 247 million shares—more than 10% of the company's shares outstanding—will be available to be sold in October and early November.  But the fun won't end there. On Nov. 14, another 1.24 billion shares will be added to the float and hit the market as their lockups expire, according to SNL Kagan.  Another way to look at it:….

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