Facebook Frenzy Begins

CNBC’s Bob Pisano writes: “My heavens, the frenzy has begun on Facebook. You would think they were giving the stuff away.  “Probably the greatest IPO no-brainer of all time," one trader said to me.  Huh? How is that? They're offering 337.4 million shares between $28-$35.

Voting rights? Fuhgeddaboudit. There are two classes of common stock: A shares and B shares. There's 1.5 billion shares B shares, about 600 million of the A shares. The B shares have ten times the voting power of the A shares.   They're selling the A shares. And only the A shares.  Get it? You don't have any real voting power.

Valuation: who knows?   You think you have a valuation. Really? What happens when the stock is 100 times over-subscribed? What happens when instead of pricing between $28-$35, it prices at $50 and opens at $120?  Ridiculous, you say? Hey, you should hear the hysteria…..

Read all about it at http://www.cnbc.com/id/47286242