FACE BOOK IPO

I thought that IPOs were supposed to raise money for a company going public. If this is so, then the IPO was a great success because it ended up making the most money for Face Book. Unfortunately for gamblers who are used to making a killing on IPOs, it didn't happen this time. Some of them are taking out law suits. I think judges should throw such suits out. I don't care if institutions knew something more about Face Book than the rest of us. I knew enough to stay out of the IPO. First the IPO price for the stock had a P/E of 100 which is huge. a P/E of 40 would have been generous. Second it was known that Face Book is having a hard time getting advertisements onto cell phones and more and more people are looking at Face Book on their phones. This has been said to be a big challenge for Face Book in the future. It seems to me that when you gamble, you have to accept the results.

There may be big investors in the underwriters that say they will switch accounts unless the underwriter makes them whole. Well, this is something between the underwriter and the gambler, but it is not something for the courts.