I am so glad that you did't either.
I have a feeling over the next 3 months that the price on FB stock will plummet even further than todays asking price of 21 dollars
and this article is why
Another 1.7 Billion Reasons to Avoid Facebook Stock (//vny!://moneymorning.com/2012/07/31/another-1-7-billion-reasons-to-avoid-facebook-stock/) July 31, 2012 By Diane Alter, Contributing Writer, Money Morning
As if there weren't enough factors to make Facebook (Nasdaq: FB) (//vny!://moneymorning.com/tag/facebook-stock-price/) stock unattractive, there's a flood of free shares about to hit the market that could make it even harder to raise the share price.
In two weeks comes the first expiration of "lock-up" agreements, meaning certain investors barred from selling their shares will then be able to do so. Typically employees and big investors are required to hold shares for a certain time period after an IPO. This is done to reduce selling pressure and the chance of a mass exodus as soon as the stock starts trading.
But now some of those investors' shares will be freed up, and they want to cash in.
Nearly 1.7 billion shares of Facebook stock will enter the market over the next few months, starting in mid-August. That is more than four times the number of shares now floating on exchanges.
"It's like a train coming around the corner toward shareholders, so they better get out of the way, Francis Gaskins, president of research firm IPOdesktop.com, told the Los Angeles Times.
The first batch of 268 million shares will be freed up in mid-August, followed by 192 million more shares in mid-October, and a whopping 1.2 billion shares will be let loose in mid-November.
Granted, a slew of those shares will not be sold, but the fresh torrent of shares to be set free far outnumbers the 421.2 million shares Facebook sold in its fabled IPO.
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