Category: Apprenticed Investor, IPOs, Trading

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

22 Responses to “THIS Is Why You Use A Limit Order”

  1. Concerned Neighbour says:

    OK, that was me. But Cramer said it could go to $70 today! Who am I to disregard this wise man’s counsel?

  2. AHodge says:

    looks like a deep pockets buyer at 38.10.
    got to keep this baby lookin ok till the lockup comes off?

  3. AHodge says:

    not too hard to manage
    they only sold a relative piddle.

  4. Scruffy says:

    Everything’s fine until the shoe is exhausted.

  5. scecman says:

    If FB stays above $38 then Greece is OK, right?

  6. wngoju says:

    That’s why, for FB anyway.

  7. reedsch says:

    Mark has already cornered the market for FB shares. How hard is it then to “manage” the supply, and therefore the price? Maybe they can keep it at $38 forever. I feel bad though for anybody who bought at $45, like being the last name on the wall of the Vietnam War Memorial.

  8. Bob A says:

    is there NOTHING else going on in the world today?

  9. bobnoxy says:

    No, this is why you don’t buy stocks selling at 100x earnings.

  10. Bob is still unemployed   says:

    Zuckerberg, in his comments this morning, said that Facebook’s mission was to make the world and open and connected place.

    Isn’t the Internet doing that already?

  11. PeterR says:

    Limit Orders used to be helpful, but unfortunately HAL from 2001: A Space Odyssey has hardwired things to be:

    AHEAD OF

    and

    TRADE OFF OF

    any limit orders.

    Have a good weekend.

    http://en.wikipedia.org/wiki/HAL_9000

  12. bear_in_mind says:

    True. Also why retail investors should think twice… er, thrice, about throwing hard-earned money at an IPO. They’re nothing but speculative activity for anyone but the issuer and underwriter. Caveat emptor.

  13. James Cameron says:

    They are battling like crazy to keep the closing price above 38 . . .

  14. bear_in_mind says:

    Yep, but this market may not give it to them unless Zuck and Co. are willing to pony-up some of their newfound billions to support that price level.

  15. bear_in_mind says:

    Probably have some firepower via Morgan Stanley to keep from ending up with egg on their faces… we’ll see what the tape has to say at the end of the day

  16. bear_in_mind says:

    I don’t wish anyone bad luck or bad trades, but these valuations are completely unhinged from reality. Delighted to be on the sidelines.

    Looks like they might have eked out a few cents at the close @ $38.09 (still some trades settling) but gotta wonder if it drops in after-hours trades and opens down on Monday.

  17. louis says:

    Yes there is, in the real world the dow tanked 500 this week.

  18. JRamage says:

    Re: Concerned Neighbour I don’t see why $70 wasn’t a possibility, considering the unpredictable nature of IPOs. As for Cramer, he said Thursday night that he’s a seller into the IPO and insisted there would be opportunities to buy lower than the IPO price. He’s right about that. Have to say, I don’t share his enthusiasm for facebook as a business, but time will tell.

  19. mote says:

    Then there was Genentech (1980):

    “On October 14, Genentech makes an initial public offering of stock – 1,000,000 shares at a price of $35 each. The stock goes up for sale on the NASDAQ exchange, under the symbol ‘GENE.’ The offering touches off a trading blitz – the share price rockets up to $89 before closing the day at $71.25. The phenomenal result makes headlines around the world. Venture capitalist and Chairman of the Board Tom Perkins later admits, “We didn’t have a clue how to price the stock. We knew it was going to be a hot issue, we knew it was going to be oversubscribed, but the board, the management, and the investment bankers were all caught somewhat by surprise. We could have sold less stock at a higher price.””

    http://www.lifesciencesfoundation.org/events-Genentech_IPO.html

    Always use a limit order. An “all or none” limit order is exceedingly cool, sort of like when playing in a melee, one should dress for the trade.

  20. scpress301 says:

    What platform is this?

  21. Maybe he did use a limit order…………at $45 lol.

  22. lalaland says:

    You turned me on to these guys via twitter, so: @nanexllc has some beautiful charts of the future SEC investigation too.

    http://www.nanex.net/aqck/3099.html