Thursday, 7 June 2012

Facebook ShareTop Short-Seller Target Among Large Stocks

The leading social networking and second most visited websites around the world with 901 millions user. facebook  have slumped 29 percent since they began trading on May 18 amid concern that the IPO was overvalued and the company will struggle to increase profit.

Sources reports say that facebook have being struggle to increase their profit from their initials trading which being from $38 now fall to $25 on $27 billion losses, but their are some unknown American company which willing to buy their large stocks.

Short interest on the Menlo Park, California-based company reached 5.9 percent of shares outstanding, according to data compiled by Bloomberg and Data Explorers Ltd., a New York-based research firm. None of the Standard & Poor’s 500 Index companies with at least $50 billion in market capitalization has short interest higher than 3 percent, the data show. Facebook, which has a market value of about $63.8 billion, isn’t in the S&P 500.

Some expect says that “Facebook is one of those companies whose future potential is unknown and unknowable,” said Robert Stimpson, a money manager at Akron, Ohio-based Oak Associates Ltd., which oversees about $900 million and doesn’t own Facebook. “The stock is expensive. The short interest might also reflect a bet that there is more bad news to come and Facebook will be punished.”

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