Probably sometime next week, Facebook is going to call in for its initial public offering (IPO). This is certainly the most exciting financial event of the year 2012 and you really don’t want to miss the boat on this one. I don’t care where you have to take the money to invest in this initial public offering of Facebook, I don’t care. And why not, go used your American Express credit card! lol.
More seriously, so far in my investment life, I only took part in one single initial public offering (IPO). I made my first IPO in Horizons Gold Yield Fund (HGY.UN). An IPO is fun because you are getting your rich hands on some stocks for free. This means that when you call your broker to take part in an IPO, you don’t pay any commission fee.
At least that’s how it went with TD Waterhouse when I place my order to take part in the IPO of Horizons Gold Yield Fund (HGY.UN), I didn’t have any commission to pay. Also, TD Waterhouse wasn’t from the list of brokers included in the IPO, but they managed to get me some stocks to make me happy! So thanks you, TD Waterhouse! I guess that normally, if your broker is an authorize IPO issuer; you may be able to place your order in your online broker account, but I cannot confirm. At 9.99$ per selling and buying operation, trust me, a commission break is greatly appreciate.
Anyway, let’s see, what’s an IPO?
An Initial Public Offering (IPO), mark the really first move of a company inside the wonderful and sometime less wonderful world of the stock market. An IPO is being called when a company want to make its move and integrate the stock market. In Canada like any other places in the world, there’re some very successful companies, like Facebook, who are not from the stock market. Among the way, those successful companies decided, for a reason or another, to get a symbol ticket and decided to take place in the stock market. The reason why of that is mostly to bring in cash to the company, that’s how the financial crap work. It might be crap, but anyone can make money out of an IPO and out of the stock market. You just need to go in there and do you thing.
As the name explains, an IPO is open to EVERYONE and ANYONE. As long you have the cold cash in your broker account, you simply have to DRING DRING, call TD Waterhouse or whoever else is your broker and say: I want some Facebook future stocks! And what you want is what you get.
It’s really as simple is that. And oh pleaseeeeee, when you place your order, write down the following: the time of your call, the date, the name of lucky broker who place the order for you and also, if he or she can provide one, an operation number or whatever else reference number. From what I remember, TD Waterhouse doesn’t provide any reference number but the broker gives, at least their name.
Facebook is not from the stock market yet but it worth as much as MacDonald. You know, the fast food company...
This is all very nice, but I am going to continue even if it’s Friday night and we’re going to see together why an IPO can be very interesting.
First of all, when you participate in an IPO, the stock price is giving. They usually ask for a minimum investment amount. From what I experience with HGY.U, the minimum investment requested is reasonable. The stock price is one fix and usually, if the company is a good one, like Facebook, once the company hit the stock market for real, the company stock usually exceed the value of the initial public offering stock price. So that’s something that is extremely interesting. You are almost guarantee to mark some interesting capital gain.
Please, take advantage of the US-Canadian parity dollar
Right now, the Canadian dollar worth as much as the US dollar one. Now more than ever it’s time to take advantage of the parity to get some fresh US dollars.
Following what, when the initial public offering (IPO) of Facebook finally kick in, well, the only thing left for you to do will be to call your broker and voilà.
You just learn something very fantastic tonight that will allow you to experience, with a bit of luck, a lot of cash in term of capital gain. So be happy! And go work on your Facebook page please! Facebook is hotter than ever before. Be ready!
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31 comments:
Like most big IPO's, you're best to get in for a few days and then GET OUT FAST before the stock drops like a rock !!!!!!!
I would like to do a quick buy-and-sell on Facebook for sure! I am quite excited, actually. :)
good luck getting IPO price. most of the time retail investors will not get a piece of the action until it actually trades and by then usually too late. watch out though, LNKD and GRPN were hyped and now are quite far from teh 52-week high price
Sunny-I have to say I hope you know what you're doing with regards to Facebook's IPO. How much are you planning on investing?
Mark
PS-Think this one through. Please. Your reasons for owning Facebook are not well stated in your post. an you please provide clarification(It seems like you are falling in love with Facebook..it might be blinding you)
Mark
So when is the IPO and when do I call TDW?
Yeah, retail investors don't get the IPO price on companies like Facebook. You could still buy it when it hits the market on day 1, but the price will already be inflated, and you'll be relying on the greater fool theory for your profits.
I am investing in this Facebook because its Facebook!
Million of users over the world are using Facebook. It's the king of the social media. Social media is the hottest thing of the moment.
It's been around for a little while but the more I use it, the more I find it fascinating. I even have a hot guy of the name of John Faux who's following me on Facebook. I have a grandmother located in BC who's following me on Facebook. I have Raymi the Minx who's following me on Facebook. ect, etc, etc. :)
Fact is, Facebook worth as much as MacDonald and Facebook is not even on the stock market yet!
I will be investing a couple thousands. Maybe 2 or 3, but it will all depend of what the minimum amount is to be part of the game.
Will see if retail investors can be from Facebook IPO! I am going to let you know how it goes! From what I know, the IPO should begin this Wednesday. Just stay tune, you can always call your broker in the meantime but I thing it need to be official before giving any buy order.
Also, another thing about IPO is that your broker need to be listed in the IPO. Like with my experience with HGY, TD Waterhouse wasn't in the authorized broker list. I was able to get some stocks anyway but it was extremely complicated because there's only one person for the province of Quebec in charge for this kind of service at TD Waterhouse and they took the hell out of me in the process, no one was returning my calls even if they asked me to wait for their call etc... it was awful.
At TD, you need to give them shit to get what you want. I now know how it work. So I call and call....
So just cross your fingers that TD Waterhouse is in the list, if not, I could go through awful things again. At TD, they don't care about you when you are just investing a 2k or 3k.
But if something happen, just complaint by email, by letter, they usually good at fixing their own shit. It's for their branding image you know.
No matter how this sound bad, TD ALWAYS fix their shit. So you can rely on TD Waterhouse even if they are not always exactly efficient and sharp - but they do care a lot about their branding. Being the only broker open 24 hours a day certainly help in the process. That's why I never left TD.
All I can say, if your blind enough to ask me WHY I want to invest in Facebook well, I guess that's because your dumb, stupid or you simply don't know what Facebook is all about. Sorry, but its all I can say.
When I invest, sell, buy or hold, its a process I do by myself by doing what I want. The reasons may not always be apparent, but there's always a reason. But you have to understand that I am not a professional and the way I invest may surprise you but I have results that I considered quite good. And I blog what I feel in the present time. I have a personal finance blog, this is not the New York Time you are reading. Just switch channel and leave me alone with my golding money and my extra marvelous investments ok?
And yeah, I am in LOVE with Facebook like a bunch of other things I hold in my portfolio.
I will do my best to be from the IPO of Facebook. TD Waterhouse will hear from me really soon. SO BE READY TD. It's my turn to get the hell out of you and this time, you better take care of business or if not I will switch of broker. Simple is that.
I want my Facebook IPO.
All the anonymouses (or maybe anonomi---lol) are bang on. Heed their advice...IPO,s can be a shills game for the offerers ie. financial houses get on the trigger finger quick. tr
Sunny, when you contact TD they should take you more serious about this IPO issue. They can see your portfolio of all your TD accounts if you give them all your account numbers.
I think all brokers are that way, as it is difficult to get a straight answer. I usually ask the person at my brokerage that if they can transfer me to someone who can better answer the question.
Hi Sunny-thanks for clarifying to me your Facebook post.
Mark
Yeah Mark, you are stupid! ....Stupid for being on this blog ang giving a financial fool advice!
Take off, eh!
We are all stupid. Ruth is an idiot, and Pattyrose is a moron. So are a few anonymous. The accountant has nothing better to do....LOL! ( but I love his advice).
Notice how Sunny rejects advice from the smart people like Mark, The Accountant and High on Divivends?
Susan Brunner, another very smart blogger, should greatly distance herself from this ex-Québécois moron.
Why do we bother? It is like watching a train wreck in slow motion.
Sunny, am in the dark on this facebook stock..how much is the stock and i would think it will be on the New York Exchange...fill me in...i love your corby stock..are you pleased with it and have you made a profit on the principal. love the amount of your dividends..wow..
Sunny, what are you actually buying in a facebook stock, i do not understand it..fill me in on this one.
Facebook don't pay a dividend . You're just gambling. Most IPO's go down.
The people who make money from the Facebook IPO will own the shares before they are available to retail investors. The investment bank who underwrites the deal will offer shares to accredited investors and the people with the highest net worth at their bank (multi-millionaires only).
You can still buy Facebook shares when they finally arrive on the stock market, but the price will probably be very inflated on day one. Your strategy is called "The Greater Fool Theory" because you will be forced to pay a foolishly high price on day one, and then hope that you can find someone willing to pay an even more foolish price soon afterwards. Good luck.
Does everyone remember last year when Goldmansacks offered 500 high net worth investors a piece of Facebook via a private placement deal. Well those investors who got in first will be the ones making all the big $$$$ off of this might hyped IPO. And thank you everyone for calling me stupid. I love being entertained...
Mark
Sunny loves Facebook so it don't matter if it makes money. She just wants it. Just like Warren Buffet wanted a train set when he was young and his parents said no. Now he saved his money and bought Burlington Northern Santa Fe.
Goldman Sachs
The stock market is a Ponzi scheme...
Mark is correct....
Facebook is being valued at 75 to 100 BILLION dollars. Oh really? What has Facebook done for me lately? I'd rather put my money into poor old slagging Ford M C knowing there'd be some domestic jobs created than FB. No divi, why are we even discussing this? Anonimous-iplus
PS...sunny you speak french...explain for us what faux means a.k.a. john faux
PS...sunny you speak french...explain for us what faux means a.k.a. john faux and mark you're one of the few SANE ONES here....so in the Canadian tradition ...take off, eh..anonahypopotomi
John Faux is the name of an handsome who's following me on Facebook :)
Facebook has employees. Its an organization that create jobs. The reality is that social media is a new industry. we may not use to that yet, but it is.
LNKD and GRPN didn't appeal to me in any may. When it come to Facebook, its a complete different thing.
I find it quite difficult to believe that some people around here don't find Facebook appealing.
And that's how I finished by calling up "stupid". But I guess readers love that roughness or may like it.
There's no doubt in my mind that Facebook is the next hot thing if you see what I mean.
It happen many times that I haven't been treat well by some staff members of TD Waterhouse. I hate their brokers freshness. Only a few seem to have what it take, but just a few. And that really make things difficult. They may have wrote horrible notes in my account.
I am not scared of any of them, what I want is what I get :)
Thank you Sunny for giving me the idea to make some quick $$ on this IPO. Since I couldn't buy Facebook shares I bought a company that already owns them, yesterday, and today I sold them for a $220. profit!!
YOU ROCK as always!
Really Pattirose? Who?
Ruth is messing with you, she is actually a guy, and a professional stock trader at that, pretending to not know anything .....
well, that was a pretty OBTUSE reference pattirose, like NOT naming the stock, why bother to tell us? (and what is the company that owns them?? Facebook will continue to run as a like private co.--forget SHAREHOLDER RIGHTS or INTERESTS-- even after going public cause Zukerberg will own 58%of it) . Cramer of Mad Money CNBC is touting Morgan Stanley (the principal IPO underwriter) as a sure play in this as they're guaranteed millions & their stock has been recently beat down in euro debt issue. If you view the Fri episode he explains how IPO's really work: for the corporates, the big boys & their buddies. Anonymous e pluribis. ;) Cheers!
I didn't ask her the stock on which she made money on because I kind of don't care. External companies having a link to Facebook are not interesting, what you want to focus on is Facebook by itself. No matter what we read on Facebook, it might not be able to grow etc. I think that retail investors have to take advantage of this IPO, if possible. So keep your bucks for the real stuff, not the fake.
Anonymous...in my next life i am coming back as a guy, u can bet on it and as professional gambler on stocks. YES!.. I am interested in how deeply in the stock market you are?? I also watch Cramer and BNN too , have picked up some nice little stocks through them and a couple of losers too.
it was GSVC, I didn't post it because (silly me) I thought if anyone wanted to know they would ask. I did no research on the stock, some analyst on BNN mentioned it as one way to play the Facebook IPO. Thay also own shares of Twitter.
Pattirose: if you,ve cashed in your profits on GSV good on you. I never heard tell of them. But what I see is that they're a very small player in the ownership. They,re fund & even in their own holding FB is 15% of their portfolio Every social media stock has been getting boyancy from the FB hype. GSV by its own admission is highly speculative, undeterminable valuation. So its one to get in & out quick if you want to speculate. TD Waterhouse wiil not give you the ipo price for FB unless yo,re a fund manager or instituional investor.You,ll have to buy it on the open market. It,ll be interesting to see how the IPO roll out will be managed..if there will be secondary or after hours markets or if trading gets too furious & gets suspended. Anonahyppopotomi :-) Cheers
SHEESH...The more I look the FB IPO, the worse it seems. According to MSN Money "The Ugly Truth about FB's IPO" & also supported by other analysts: Zuckerberg is playing a smoke and mirrors game with Class A and Class B shares. Just thru the public offering (no additional Zuckerberg $ invested) he will actually increase his current controlling interest in FB from 24% to 57-58% Altho 2 classes of shares can be issued on private co's. as they go public to differentiate/compensate/maintain power by the original owners, Zuckerberg is using a 10 to 1 voting ratio for his personal Class B shares. Not only that, when/if his personal shares are sold, they revert back to normal A shares, further magnifying the voting power for every B class held. SWEET!! He grabs your money, but he will ALWAYS control the company, make the operational and investment decisions, and he will personally determine how & by how much he's compensated. All hail King Zuckerberg, long live the King!! Anony-en plus. ;) Cheers!
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