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Economy
In reply to the discussion: STOCK MARKET WATCH -- Thursday, 2 February 2012 [View all]DemReadingDU
(16,001 posts)19. Karl Denninger: "FB": DO NOT BUY
2/1/12 Karl Denninger: "FB": DO NOT BUY
Ok folks, it's not often that I issue a rank do not buy statement on an S-1 (in fact, since starting the Ticker I can't recall ever doing it) but this is one where I feel I need to.
It's Facebook.
I'm basing this on one, and only one, criteria -- the rate of acquisition of new accounts is slowing.
That's all I need to know and it should be all you need to know -- the company filed the S-1 as soon as they detected this slowdown in December.
In addition participation is narrowing; there were 1.74 users monthly per daily user in 2011, but 1.86 a year prior.
These are potential signs of leveling off. The deal with almost-certainly price assuming a ridiculous price to sales and price to earnings multiple, which means that the growth numbers must be maintained as the P/E/G ratio will be in the stratosphere.
If it's not you're going to get your head cut off.
more...
http://market-ticker.org/akcs-www?post=201409
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We watched that last night. Our littlest one made a "pop-up" groundhog in school yesterday
Roland99
Feb 2012
#31
Not to mention the fact that its "product" is useless, pointless, and can be harmful
Demeter
Feb 2012
#21
Affinity fraud; Fleecing the flock: The big business of swindling people who trust you
Demeter
Feb 2012
#10
Yet More Mortgage Settlement Lies: Release Looks Broad, Not Narrow; Other States Screwed to Bribe CA
Demeter
Feb 2012
#13
Holder & Obama’s Propaganda “Belied by a Troublesome Little Thing Called Facts” By William K. Black
Demeter
Feb 2012
#14
Attorney General Champs, Chumps, and Eric Schneiderman By Abigail Caplovitz Field
Demeter
Feb 2012
#18
But, just think of how hard it is to raise a billion bucks in campaign contributions!
Fuddnik
Feb 2012
#20
Oil down 1% to $96.61/bbl. Gas prices here about $0.25 shy last summer's highs.
Roland99
Feb 2012
#33
Actually OBama is much like FDR, FDR had one advantage, a HUGE Democratic majority in Congress
happyslug
Feb 2012
#57
Obama's Democratic Congress was no where near as left wing as the Congresses of the 1930s
happyslug
Feb 2012
#59