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Hedge Funder Who Bet $100 Million On The Facebook IPO Just Called And Boy Was He Furious
http://finance.yahoo...-184159786.html
Business Insider: So what happened on Friday?
Anonymous Hedge Fund Manager: Early on Friday there was euphoria. You started seeing these messages out of Europe about a market being made around $70/share. We started seeing allocations were out. We heard big firms that put in for big amounts were not getting it. We heard retail customers at small firms were able to get some stock: a couple thousand shares. Then you had guys with $20 million accounts at Goldman who were getting 200 shares total. It was just kind of messed up in allocation.
Business Insider: When did things start to go truly wrong?
Anonymous Hedge Fund Manager: The message that this thing was getting traded in the $70s started getting tremendous hype. Then we started getting looks from the floor. The first was $50. Then $45. Then $42. Then it was holding at $42 for whatever reason. $42. $42. $42.
What happened was NASDAQ was delaying it.
NASDAQ held a conference call and they said we're going to delay.
While we were waiting for it to open, if you called the Morgan Stanley institutional desk, they would tell you "we can't put any buy orders in." If there were institutional investors who wanted to round out their positions they couldn't do at that point.
The stock opened at $42.
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Business Insider: Final thoughts on the IPO?
Anonymous Hedge Fund Manager: It never stood a shot. If there was any enthusiasm for this deal, that got wiped out. Think about a guy who was going to put five grand on this. You go to Vegas and put $5,000 on the roulette wheel and it breaks, it's like, hold on, I'm not going to do that. Suddenly you're like this is Wall Street and I hate Wall Street.
Business insider: You could argue the system failure may have saved some of the Muppets, then?
Anonymous Hedge Fund Manager: No doubt. But this should have been a blockbuster. This should have traded to $60 or $70. This should have launched a wave of tech IPOs.
Topics I've StartedBVSN 32.60 -6.85 -17.36% daytrading nirvana07 February 2012 - 01:48 PM
You can make alot of $$ just playing the momentum, as long as you cut your losses quick if you're wrong. Dangerous for novice etraders, but a dream vehicle for a protrader. Back in dot.com bubble, there were 100s of stocks like this.
There is alot of talk about how market volume is down, but the counter to that is the supply of stock is shrinking as there are few IPOs and other stock offerings, and cash-rich corporations are buying back their stock. That combined with Bernanke flinging mountains of freshly printed electronic fiat has created ideal trading conditions.  AAPL + GOOG holding up the nazcrack06 February 2012 - 02:15 PM
Most nazcrack stocks are in the red, but AAPL and GOOG are holding it up. AAPL I mentioned 10 days ago that it would have a lull post earnings due to opex pressure, but since then it has pushed higher. AAPL's forward PE @ 9.8 is still lower than MSFT's forward PE @10.10, and AAPL is growing much faster.
GOOG is different case because they missed on earnings, but after the gap down post-earnings, it formed a shallow V bottom, and once it got into the gap, traders have piled into it. Even though GOOG missed, keep in mind that GOOG investors are used to wild gyrations @ earnings time because GOOG mgmt does not provide guidance so sometimes the analysts are way off. GOOG is still growing and PE is in low teens - not as cheap as AAPL but expectations lower than AAPL. Investors are using the opportunity to BTFD.   http://www.nasdaq.co...spx?col=6&dir=U |
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