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IPOFinancial.com president David Menlow, Point View Wealth Management president David Dietze, and Falvey Partners founder Peter Falvey react to Facebo...
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Republic today all right thanks very much Lawrence joining us now got David Dietz would point view wealth management and David -- with IPO financial dot com and Peter all -- evolving partners.
But -- of David -- You know did the bankers -- a great job of pricing here because it didn't have doubled reported that bankers do a bad job -- got too -- I think actually did a pretty good job here because I mean obviously it's a slight uptick.
Arguably it's it's a very fair price I think the only thing where they going to be disappointed is.
You know in many of the full service brokers they like to if Britain promote the idea if you -- the better customers you can get it on the IPO price and we saw.
Later on this morning earlier this morning that you could who could have bought on the open market the same IPO price so no big advantage to have.
You know.
-- up your broker.
-- he did in Menlo you call list you set your predicted today that you would not get a big pop out of the stock and we don't have that we're 39 before you even said.
Forty to 45 would be a decent close -- stock current what do you think right now are you in a surprise -- what you're saying at this moment.
Well it was a little breathless when I saw printing going on at unchanged at 38 dollars a share but the stock rally back up to 48 trading in the high thirty -- at this point.
This is clearly an institutionally dominated stock because the stock ended up getting hit very hard.
Moving forward anybody who wants to buy stock can now take their time make an investment without having to worry about making investment demand thinking about it later so.
Calmer heads are out there -- cut.
That's got to Peter involving eight Peter -- FaceBook fails to close over forty dollars today -- -- gonna be seen as a FaceBook flop.
I think it's pretty hard to say that Facebook's we have flop it's over a hundred billion dollar market cap -- fewer than 25 companies in the United States that over hundred billion dollars.
I will say that it's surprising I would have expected to open in the mid forties and trade up from there.
Given the overall demand we've seen but it's pretty hard to call a flop at these levels.
-- it did diesel talk about Mark Zuckerberg here right now the fact that his valuation of course depends.
His overall net worth depends obviously on what we see today we're tracking it moment by moment.
Is he really the ultimate winner here and not the -- -- not -- -- that would love to be part of FaceBook but can't even get into a problem probably right now.
Well so far the retail investors of course haven't made any money.
They're certainly benefiting from the great job Mark Zuckerberg has done in terms of building FaceBook it is a great service but it you know at the end of the day.
When you see something trading at about 75 times earnings.
You know we also love our Google we also love our Apple's hype iphones ipads you can buy Google sixteen times earnings apple twelve times earnings seems to me.
Does make a little bit more sense for the retail investor to plow into so David -- is that the better by the day Google or apple instead of FaceBook -- Very -- perhaps -- Best Buy is for FaceBook and I said previously thought that this is an overvalued situation by any stretch.
But people feel much better about buying a thirty you're 39 or forty dollar stock.
With the prospects that we have moving forward for FaceBook and that's all they're thinking about.
They don't want your valuations they don't wanna hear what I have to say -- -- or anybody else they don't care about all the technicals.
You know what -- -- there are other partnerships here that are available to retail investors they can buy into the FaceBook.
Has Syria what album being part of FaceBook shares that could buy and athletics Digital Realty Trust Zynga I -- there are other ways to play those why don't we go that.
Direction -- all.
Well I actually think that it's it's pulling more -- for the average investor to body at 38 dollars and they're gonna feel good that they're getting it at the same price that Fidelity and other big institutional investors are getting that so I think from I -- -- -- institutional investor's perspective they're gonna be disappointed if it doesn't go up but from the retail perspective.
It's actually great thing mistreating here in the get in on the same price they actually maybe demand will build David deeds got another question -- Korea and I've just forgotten that the so -- Well actually might know actually I -- wanna ask this David deeds is as perfect because look at that -- -- -- Goldman Sachs Microsoft I mean these are the big major shareholders of FaceBook again.
I ask you this question David because of that the smaller.
Retell investor.
-- isn't Britain for them David maybe they need to look -- Yeah actually up a lot of prestigious institution investors have bought the shares.
When you are still private but remember they got in at a much lower price so just because it made sense for them when they -- -- Perhaps five dollars a share doesn't -- it makes sense -- -- retail investor to come in at 38 dollars a share.
Alright and would give him along quick thing about Apple's been soak up all the tech love it's 18% S&P tech value -- was 2% ten years ago could -- Apple get hurt here we start to fall in love war with FaceBook.
No I think the reality of what is happening now fundamentally with -- apple is going to be something people can put their arms around and feel comfortable getting into the stock.
This is still a wishbone and it depends on how it's breaking as to whether individual investors are gonna feel comfortable in the near term if the stock goes down the study.
Notice is the second biggest domestic IPO that we had an American history.
Capitalism it's it's a very very -- the cover we -- see what the stock does.
David -- David -- guys great thank you haven't you're having us thank you for joining us on senate candidate talking gonna come back a little bit later and of course -- faulty Peter thank you for joining us that.
