Is Goldman "Destabilizing" Facebook?
I haven't weighed in on the Facebook issue as how to value a "chat room for friends and family" is way out of my expertise but I did read this article on how Morgan Stanley and Goldman Sachs are making money by "stabilizing" the FB shares:
Morgan Stanley, Other Underwriters Make $100 Million Profit on Facebook IPO
So Morgan Stanley had control of 53.5M and GS had 9.5M of "overallotted" shares in order to stabilize the stock price....but from what? The valuation that THEY set? And who were the one's trying to "unstablilize" the price and why would GS be nickle and diming around with Facebook stabilization when so much more money was in play (over $100B)?
So I checked the first "Insider Transactions" to be posted and of course there's Goldman Sachs selling over 24M shares at $37.58...which is less than the $38 opening price!
http://finance.yahoo.com/q/it?s=FB+Insider+Transactions
I have no doubt that when over $100B is in play Goldman is taking both sides of the bet rigging and manipulating the price back and forth to squeeze every last dime out of any suckers who bought into the scam.
It serves people right for PLAYING IN THEIR GAME!
More to come on Facebook issues as it may be an excellent "Exposure Maneuver" by the Good Guys to show the world that the stock market is just another scam.
May the Road you choose be the Right Road.
Bix Weir www.RoadtoRoota.com
