Facebook insider sales are huge red flags

[marmar]

By John Shinal


SAN FRANCISCO (MarketWatch) — If you had inside knowledge of a hot investment that you expected to be worth more in six months or even three months, why would you sell your stake this week?

That’s a question retail investors should be asking themselves now that the level of stock-dumping among Facebook Inc. insiders has reached a level that can only be described as “Grouponesque.” Here’s just how much certain Facebook insiders are selling.

With the additional sales planned this week, early investors are now selling more Facebook stock — and pocketing more money from the offering — than the social network itself.

That’s similar to what happened during several early funding rounds of Groupon Inc., whose stock is now trading far below its IPO price. .................(more)

The complete piece is at: http://www.marketwatch.com/story/facebook-insider-sales-are-huge-red-flags-2012-05-17

[xchrom]

1. Du rec. Nt

[uponit7771]

2. This stock will no doubt be dumped as soon as it can be done legally

[MineralMan]

3. If I were an individual investor,

I don't think I'd even mess with IPO offerings until some trends were established.

[get the red out]

4. Might as well go buy a lottery ticket

This is more like gambling than investing. Hoping for a quick payoff from the stock of a company that creats nothing but a media blitz.

[n2doc]

5. Doesn't this always happen with IPO's?

If I were an early investor, I sure would want to sell some of my holdings, if only to diversify. Now if Zuk sells most of his stake, I'd be a lot more concerned.

[GeorgeGist]

6. Take the money and run.

Facebook is Done.

[Yavin4]

7. The Money That You're Taking is from Pension Funds

and other large institutional investors. The banks get paid no matter what.