You're watching...
IPO Financial.com president David Menlow gives advice for getting in on the Facebook
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
She.
Well what about the small retail investors who want to get into this David -- low of IPO financial by -- what those.
You David E*Trade just named as underwriter.
And I'm curious now because this gives our clients more access the average retail investor.
Is this a sign that this IPO is gonna be different than other IP us.
I would tend to think it's not going to be very different as far as your allocation process even though there are just boards.
Of underwriters that have I guess a retail bank to them.
This is just going to be an avenue to try and get more people into it but obviously the Morgan Stanley's and the people at the top are going to be the ones to decide who gets how many shares.
Let's let's take FaceBook goes public at 35 dollars a share that would millions of new bidders out there stock could double.
In a single day should I put in a bid that's higher than the offering price to -- -- get some of those shares.
Well it first of all you're assuming that it's only got a double at the opening here it could in fact go quite a bit higher.
If you put in -- a price above where it actually comes out it just means that you're in the field.
Of potential people that could get an allocation.
Then it filters down to the individual brokerage firm and a brokers as to whether or not they want to give you shares.
You don't usually at IPO for the recent -- -- of the participation -- about 15%.
It's estimated now with these latest moves it can be twenty to 25%.
Now one if if -- -- -- can get and that way more.
You combine -- -- fatwa is a global up because the global SX media fund global ex social media fund.
That's gonna include the FaceBook IPO what would you tell our viewers to do what's -- today try to get -- that they want NN.
If they can get into the IPO price shares that by all means that the best way to proceed but they -- why do you trader any other brokerage firm -- wouldn't say it but because we're showing one right now I would not say of -- because that's not the only position in the fund.
So you're gonna have a dilutive effect if you actually say I wanna get to fund they may have.
Maybe 5% of their position as FaceBook.
You tell your clients to buy the stock but would you tell your own mom.
To buy this stock I would tell anybody who's listening to this broadcast anybody who calls us that if you can get IPO price shares this is a blindfolded -- Even with my concern.
About Mark Zuckerberg has control controlling shares controlling interest his board vote everything else that he's got too much power.
Over company that has yet to really potential what really has yet to prove itself financially you still say that.
Yes we are in a feeding frenzy mode -- at this particular point people don't care.
Where the shares are coming from this offering they just want to know there are only 337 million shares.
Why so little.
Home man or so far this has talked triple -- first -- likable prediction here bold prediction it could very easily triple I would easily triple thought it could triple I wouldn't say easily but certainly this is gonna be a -- -- And is even understand what FaceBook is is Madonna is a book Elin never tell I just I don't know I mean it was a great question done in the -- -- mother didn't get Warren Buffett we'll stay away from the kind of the -- says more about said he was a good again to a -- well.
The institutions at this particular point are not worried about value.
They're worried about how much stock they can get at the IPO.
There exit point is what the word itself let's look the house and Arizona something an element about David -- IPO financial icon David they can't.
