Facebook insiders are dumping millions of shares, but there has to be someone on the other side of the trade. They say there are like 250 million shares not locked up anymore as of Thursday and another 1.7 billion to be unlocked by Dec 2012. My question is, who the hell is buying all of these shares ? Is it market makers ? Are there really that many people buying FB ? 2 billion shares hitting the market at todays prices is about $40 billion. Are there that many suckers out there buying $40B worth of FB ? I would think the sellers wouldnt be able to get out at some point Someone explain this please !
There really is not anything to explain. Every broken stock, every weak company has securities that reach clearing prices that constantly adjust. You think it is going down and you may be right but for all we know Gorge Soros is scalling in every half point down as he accumulates a billion dollars worth and a few others are doing the same. BTW ... i would not touch it with a barge pole but that is just my opinion. The buyers disagree.
Here you go: available for sale =/= sold Clear enough? Not? So just because they CAN sell it from now on that doesn't mean they already SOLD it...
It's a "good" time and location to buy for those who have been short. Avoid "reading more into it" than necessary.
The people who are buying are the Nov 15th lockups. On that day the market will be flooded with another 1.2 billion shares. They want the small guy to think facebook isnt going to fall anymore and $20 is a good buy so on Nov 15th they can all dump. Mark my words...FB will be below $10 before Christmas.
Trading volume was twice the average, but that doesn't tell you a share how many times changed hands. For comparison, GRPN traded 4 times the average volume today. So compared to that....
your basically saying that the insiders have a weak hand.... if they believe the company is going to work long term.. why sell? those people are already filthy rich.. if it turns into a goog or aapl.. they would be stupid to sell.. plus their basis is so low they can totally afford for it to go to ten.. if you own it at 1 dollar.. going from 20 to 10 isn't a big deal if it then goes to 200 over a 5 year period... theres a millino ways to think of it.. but to assume that insiders are just going to dump right when the lock up is over is stupid... trust me.. they have advisors and they are gaming the fuck out of the retailer..
FB's PE is ~106. Look out below. You probably have some shorts covering as the insiders panic sell. It is a good opportunity to get filled. This stock is ready to collapse, hard, insiders who hold are going to lose a large percentage of their value. Can FB be successful? Will it get bought out? Maybe, but it doesn't belong anywhere near $20 a share. Holders are going to dump this stock, and the street is going to steal this company.