Download now: Gold and Silver Mining Stocks

Day 3: Facebook Falls

"I've never seen that before in 10 years..."

Written by Ian Cooper
Posted May 22, 2012

As I reported here:

Wedbush just started Facebook with an outperform rating before the IPO even materializes, and Stern Agee initiated coverage with a Buy rating. But these initiated buys are just too funny — and blatantly consistent with the theme of the shills.

You know that. I know that. And they know that.

Remember when Motor Trend magazine gave the Chevy Volt its “Car of the Year” award before the car pulled off the assembly line?

Remember how much of an embarrassment it must have been for the magazine when the car became an abysmal failure?

Well, Facebook's fate will likely be worse than the Chevy Volt...

And it was worse. It was a disaster.

The stock got down to $30 a share this morning... and could fall even more.

Nice call, Wedbush and Stern Agee. Your clients must be thrilled with your advice.

Here's what's interesting.

Lead underwriter, Morgan Stanley cut its revenue forecast for the company shortly before the IPO.

“The change in Morgan Stanley's estimates came on the heels of Facebook's filing of an amended prospectus with the U.S. Securities and Exchange Commission (SEC), in which the company expressed caution about revenue growth due to a rapid shift by users to mobile devices. Mobile advertising to date is less lucrative than advertising on a desktop,” says Reuters.

"This was done during the roadshow - I've never seen that before in 10 years," said a source at a mutual fund firm who was among those called by Morgan Stanley, according to the same report.


The Best Free Investment You'll Ever Make

Sign up for the free Wealth Daily e-letter below.

In each issue, you'll get our best investment research, designed to help you build a lifetime of wealth, minus the risk.


By signing up, you'll instantly receive our new report: Surviving the Coming Economic Collapse.... Finding The Most Profitable Investing Opportunities For Your Portfolio.
We Protect Your Privacy


What is the benefit of the email subscription?
While the Wealth Daily website offers access to the articles and reports, as a newsletter subscriber you will be among the first to receive access to the valuable advice, delivered directly to your inbox daily, and you will have access to deals on our exclusive services.
Greece's Keynesian Experiment
Big Government Doesn't Work
China's World Domination
And Why it's Not Going to Happen
Should Greece Pay Its Debt?
The Case for a Greek Default
Gold's Early Warning
Deflation May Be Coming
How to Retire Like a King
5 Tips for a $1 Million Retirement
Guaranteed Returns in Cotton Futures!
Uncle Sam's $5 Billion Cotton Scam
Investing in Rhenium
More Valuable Than Oil and Gold Combined!
How to Retire Like a King
5 Tips for a $1 Million Retirement
Greece is Screwed!
10 Ways to Protect Yourself from the Global Economic Crisis
Investing in the Next Silver Bull Market
Silver Short Selling: Manipulation or Opportunity?