[va_coder]

It's useful to me. The amount of words doesn't equal the quality of the content.

When my dad asks if he thinks he should buy some Facebook stock, I can tell him the IPO was more about allowing insiders to sell their stock than raise capital. Red flag

[ljd]

As most of us in the weeks leading to the FB IPO, I was also asked by friends and family if they should buy stock and the best answer was not to give hard yes/no's because I simply didn't know how the market will react to something this unprecedented.

However, coming from a value investment and algorithmic asset valuation background I explained the problem to them this way:

A Honda Civic is a great car at $20k? Yes.

Is a Honda Civic a good car at $90k? Probably not.

Could you find someone to buy it at that price? Probably.

Should you buy it at that point? That's what buying FB at a $110bn valuation is.

It's still a great car but I'm not going to buy it for that price.

[smackfu]

I personally look for sourcing and well argued points when evaluating the quality of the content. This has neither, since it's just an aside in a bigger article. The submitter didn't even use the blog title which is the standard here.

[drumdance]

This is largely true of most IPOs. Until the dot-com bubble IPOs were to be avoided by investors until the company had a few quarters to prove their business delivers consistent returns.