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Singular Research Managing Director Robert Maltbie, Renaissance Capital Principal Kathy Smith and Canaan Partners’ Maha Ibrahim on the outlook for t...
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For -- joining us now.
-- hi Abraham general partner at venture capital firm.
Canaan partners Robert -- And IPO investment advisory firm -- -- us a little -- first of all this is this is a filing.
That -- he gives us a chance to kind of kick the tires see what the financials are which have been private so far one of the folks out there are gonna be able -- in the FaceBook.
It usually takes about six weeks to two months after the filing before the offering process will start so it'll be a little bit of time.
And I would use the FaceBook terminology to say just overall what's not to like.
About FaceBook it's.
The commitment and large juggernaut social networking companies that have -- that give advertisers access to be intimate social interactions of one.
Of seven people on the world.
And if the deals anywhere between five to ten billion size it will be the largest Internet IPO ever.
And up to ten billion in size will make it the number two constituent in our -- Renaissance IPO wow.
By the way that would make it worth the company entire -- worth about a hundred billion right.
It depends we'll get to see an ever shares -- -- -- well Robert are you is wildly optimistic about this is Kathy is.
Certainly it's a historic.
Moment -- I think everything outlook and what was I doing and when FaceBook went public to be one of those moments but.
There's a huge difference between a great company and a great stock price we believe FaceBook should trade.
Up 30%.
Minimum on the first day so if you're not in at the IPO price we.
Billy stay away from it may be for up to six to twelve months gonna come at a huge premium.
Well -- 11 problem I have where that's there is tremendous access to a lot of information of -- People on FaceBook but that's precisely why some people are getting out of it some people don't like FaceBook to have all -- Private information -- that work against that.
I don't buy that at all the FaceBook is a BMF people.
Are addicted to it it is a vibrant active community and country will continue to for the foreseeable future.
Until you see a real viable competitor which is frankly not on the horizon anytime soon FaceBook is -- it.
Well -- the halo effect if if all you folks -- if you're optimism is well placed I think Robert is a little less so but.
What is this going to do to the IPO market in general.
Well I think it's important because -- IPO market has not been a welcoming place in 2011 the 200 or so -- is that we're done over half for trading below their IPO price.
However so far this year the market started to improve.
Our index is up 11%.
So far in 2012 and that's double the the return of the overall and we did take zinc go -- long time to get above its IPO price of that investors are going to be very careful about analyzing this and it it there are a lot of cautionary.
-- associated with any of these companies that we'll have the case of FaceBook a real premium multiple.
Are right Wal-Mart I wanna go back to Robert I have forgotten about Cuba -- -- the deal for a -- what about private investing there's there's a lot of venture capital lot of cash out there.
And folks wanna wanna put it in the private startups who may become the next FaceBook is this gonna have any effect on that.
I think that's already been priced in FaceBook has been a big company for a number of years and certainly that has buoyed the valuations in the private sector for social media and social gaming companies.
But -- so far as this FaceBook IPO is being this.
Watershed moment for private investing I just don't I just don't think that's the case because we've already been looking at FaceBook as being a very very large.
Component of the valley firm.
For a number of years now all right -- Roberts.
Finally to you with a sort of nay -- -- the group although you're not so much committees but say after the -- the initial offering it goes up to that 30% market she said it shouldn't go above.
But there is an upward trajectory people are buying it like crazy would you get in then.
Now would not David I think also you want to wait until the investment bankers issue there.
Buy recommendations.
For the so called underwriting case.
The the people will make out best on on the FaceBook deal in the first six to twelve months or those who got -- -- PO price the venture investors.
And Wall Street is a huge -- and for Wall Street probably about 300 million dollars so.
Maybe even a better place a look at -- depressed investment banking stock that you don't carry alphabetical -- Robert -- -- Kathy Smith Ahmad Abraham exciting times thanks for being here appreciate it.
