This story is interesting. One of Facebook’s directors and early investors, Peter Thiel, dumped most of his FB shares. He filed with the SEC for the sale shortly after the IPO. He sold his shares nearly immediately after the 3 month lock-up period expired. (For IPOs, insiders typically must wait 3-6 months to sell their shares.)
Peter Thiel knew that the Facebook IPO was an overpriced turd. He cashed out of the Ponzi as soon as possible.
He filed with the SEC on May 18, but the filing was only recently disclosed? That’s flagrant corruption. The sale paperwork should have been immediately disclosed as soon as it was filed. The SEC’s job is to protect insiders, and not ordinary investors.
What’s the point of requiring executives to disclose share sales ahead of time, if there is no public disclosure? Peter Thiel’s share sale paperwork should have been disclosed immediately, rather than waiting until after the sale. If people knew that insiders were planning to dump their shares, they may not have purchased right after the IPO.
I already wrote about naked short selling and the Facebook IPO. Summarizing, banksters naked short sell a “hot IPO”, counterfeiting shares and stealing from muppets who buy the IPO hype. After the lock-up period expires and insiders cash out and the stock tanks, the naked short sellers can easily cover for a profit. The big “benefit” of the IPO share lock-up period is that it’s a profit opportunity for banksters who naked short sell.
This story shows more funny business, regarding Facebook insiders cashing out.
Rules that restricted investors from selling their stakes immediately after Facebook’s IPO expired only for those who sold stock in the offering. The select group includes venture-capital firms such as Accel Partners and Greylock Partners and Wall Street firms like Goldman Sachs Group Inc. and Tiger Global Management.
Employees who own Facebook shares are only able to watch at this point. Lockup expirations in October, November and December will allow Mr. Zuckerberg and other employees to sell more than 1.4 billion shares. The biggest lockup expiration, freeing more than one billion shares, is set for Nov. 14. The last lockup expires next May.
For true insiders, the VCs, they could dump their shares after 3 months. Facebook employees have to wait 6 months to cash out their shares. By that time, all the insiders will have sold, pushing down the share price even further.
What is Facebook selling? It isn’t their website, or advertisements on their website. Facebook’s biggest “product” is their FB shares. Facebook is a widely-known website. That makes it easy to con fools into buying overpriced shares.
That distorts the market for software startups. VCs don’t want to invest in a good business at a fair valuation. They want the next big Ponzi. A good Ponzi is *MUCH* more profitable that a good Internet business.
The mainstream media hypes the IPO. That makes it easier for insiders to dump their shares on clueless muppets.
As a non-insider, never invest in an IPO. Even better, avoid the stock market completely. It is better to buy gold and silver, take physical delivery, and hide it someplace safe.
Facebook insiders knew that the IPO was an overpriced Ponzi. They dumped their shares as soon as possible. Insiders got to cash out before FB employees. Insiders had to file their Ponzi cash-out plans with the SEC immediately after the IPO, but the SEC did not disclose those sales until after they occurred. The SEC protects insiders, and not ordinary investors.