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Facebook IPO No Friend of Individual Investors?

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  • Description

    FBN’s Gerri Willis on why individual investors may want to avoid the Facebook IPO.

  • Duration 2:33
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This transcript is automatically generated

Golf let's have a credit can't expect the market -- -- tomorrow.

But guess what Gerri Willis is here she says -- IPO not so good for in -- individual investors.

In fact she says it stinks.

Stop the madness stop the hi this is not a deal for small investors and let your last name is gold miners Sachs you're not getting -- -- -- -- -- after a -- -- -- paid upwards of a hundred bucks or more tomorrow by close of business of it does what they expect.

Let's take a look let's make some comparisons some real world comparisons with tech IPOs over time okay.

If you look at the five biggest tech stocks.

Google genuine easing up a group on denies OK so three of those are trading below their offer price not even their first day close on -- offer price one.

Is out of business only one was a rock and roll success and that of course -- Google.

So if you look back at history it's got one sign for you forget about it Internet IPOs don't work for.

Individual investor and you know the big investors looking to throw their shares back in hoping to pick up on -- frenzy and make a quick buck that way as well also really got to be can't actually my second point is that 57% of the offering is all insiders trying to get out right.

When they're doing at the original investors in this includes Goldman Sachs Sachs tiger Peter O'Neill -- people who originally put money into the company that tells you.

They're done -- they wanna get out there ready to move -- You know the more I look at this in the more -- the coverage -- -- of this and the hype around in that conversation about the quality.

The -- discuss Diana because individual investors need to know.

That this is not the best place for their money you may use FaceBook you may like FaceBook but that doesn't mean it's a good investment.

May not now -- may be laid up.

That's a good idea or if you happen.

Lot to get money because that's kind of what it is at -- you know it's a lottery -- -- you need to buy lottery ticket or if you haven't you would think Morgan Stanley we know what I hear -- -- why you can -- I wanna pick something that I think is gonna grow.

And make sense over the long term and what you find with these Internet stocks is that they have a short shelf life and that the numbers that I showed you before.

-- and -- move in cycles and guess what.

FaceBook is no spring chicken you know when it comes to being in the Internet MI hit that palm IPO member of the -- yeah -- nominee falling -- happened -- yet we knew exactly I would go coming audience of about this tonight and we're gonna talk about this Hilliard head -- -- my understanding our faith that in -- you have heard enough about face.

-- really did real prince but so join us at eight.

And I live age eleven and -- -- -- we get people some of the market again.

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