Do Not Listen to “Experts” or Jim Cramer on Facebook (FB) IPO; Update on VALUE VAULT

Mad Money’s Jim Cramer came out strong on the Facebook IPO, claiming they were “too legit too quit” claiming he had better experience than anyone to call this. Sad day for the Mad Money host, looks like an epic fail.

See Cramer in action: http://www.youtube.com/watch?v=vKJSuBMr4u0

Who is to blame? http://www.youtube.com/watch?v=PSgKV6zJdHs

Cramer, again, takes no responsibility. Surprised?

Avoid “experts”

If you are a beginning investor struggling to find a way to invest then take the above as a lesson on what NOT to do. Make your own mistakes.  Jim Cramer is not an “expert” on Facebook. He did not value the company; he is only there to generate excitement.  Readers of this blog would at least know to figure out what expectations were built into the price of F. Go here: http://wp.me/p1PgpH-PM. High expectations for future growth can be lethal to the share price if those expectations decline. Spend your time reading annual reports in the companies that interest you not watching CNBC.

Analysts’ predictions:http://www.astrocyte-design.com/interests/analysts.html

Prudens Speculari

A further commentary from Prudens Speculari: Social Networking Junk. (Warning: this blogger despises MBAs).

I haven’t touched on the social networking sector in some time so I thought I would today. These gems are really something to behold. The sector is highlighted by Facebook ticker FB. What do you say about this? The chart says it all. The latest news is the sale of a huge whack of stock by insider Peter Thiel.

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 a 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 networks.

“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

Update on Value Vault

I finally will have a block of time this weekend to push ahead with reorganizing the material. I know many of you have had troubles getting into the vault. The folders may be over the storage limit for the free accounts. I will speak to customer support this afternoon and find out the issues. Hang in there!

HAVE A GOOD WEEKEND

4 responses to “Do Not Listen to “Experts” or Jim Cramer on Facebook (FB) IPO; Update on VALUE VAULT

  1. It’s difficult to believe Cramer used to run a hedge fund if he thought FB was a buy at its IPO.

    BTW, FB is probably not the worst IPO in history. There are actually some close ties on that. One of my personal favourites is Madagascar Oil, or something like that. Its shares were suspended just weeks after its flotation (on AIM, I believe). I don’t recall the exact reason – either it was the government confiscating its assets, licences, or somesuch.

    Quality stuff.

  2. Whatever Jim Cramer says, it’s safe to say – you could do much better by listening to the guy and then doing the exact OPPOSITE 🙂

  3. Hey John, can you provide me access to the value vault? I had sent you an email at your aol id. My email is tarunparmar@gmail.com. Thank you, Tarun.

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