All the experts out the woodwork now that the horse has left the barn. I especially enjoyed the laughable rant by Jim "any investor who can get shares of Facebook should purchase as many as possible Mad Money 0516/12" Cramer the other day regarding the Thiel sale of stock. Funny how Jim gets lathered by an insider selling out, which by matter of fact is EXACTLY what an IPO is, yet the billion dollar purchase of a NO revenue, NO profit less than 2 yr old startup company Instagram (or Instacam as it should be called) is not concerning? Sadly for the minions who follow the pied piper of hype, the common denominator for Jim Cramer is if things are going up "who gives a shit", but when things tank, look out cause he's a scapegoat huntin'.
But it wasn't just Jim Cramer. The street is full of his ilk. Do you remember these gems.
"I would invest in Facebook, I don't care what the opening price is"
Apple co-founder Steve Wozniak as part of Facebook pre-IPO hype which should become case study blueprint material for aspiring Wall St. propagandists. So sure Steve, and the rest of us would eat, drink and party like drunken sailors were we worth a couple billion.
"Investors looking to short Facebook stock are getting in front of a freight train"
Needham and Co. senior analyst Laura Martin Wed May 23. 2012 with FB trading around $31-32/share. I didn't even mention the $40 target she had on the stock. Thank heavens they didn't let a junior shill, excuse me, I meant analyst near the stock.
Well, the social networking stocks continue to get crushed which is at it should be. Math is math and 2+2=4 no matter how many times an literal army of paid, Wall St. MBA's tell you it equals 6.
Anyway back on April 23 of this year I had the following posts on twitter regarding some social networkers.
"ZYNGA shareholders join GRPN 1's hope'g 4 an Instagram-esque buyout miracle. Like GRPN, no fraud, simply "growing pains"
That comment about growing pains was from some Wall St. "Henry Blodget-esque' analyst reassuring the 'muppets' that holding the stock that all was well.
"With Wall St. track record sell'g toxic paper I marvel @ the sheep lining up 4 shear'g. IPO shud B renamed ISO. Insiders Selling Out."
To remind everyone the term 'muppets' is how Goldman Sachs fondly refers to its paying clients. I wonder how many Goldman clients out there think, "they can't be referring to me, gotta be the 'other clients"
"Don't forget that other social networking 'must own' gem Angies List ANGI - 14.5 better hold or the target is 9.25"
Below is a daily view of Angies List ticker ANGI. The yellow highlited area is April 23 where I outlined the 14.5 mark. Notice the activity April 27 (purple), May 3 (green) and May 9 (blue). I suspect high frequency trading algorithms on a short stop loss hunt, but I am not an expert in that arena.
I bring this up because ANGI although it took a while and attempted to gouge out the eyes of anyone daring to short it the piece of junk, yes thats what it is, is now trading 9.70 and hit 9.43 this morning. It took the the milk bus route to get there but arrived nonetheless.