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by htmltablesrules 5011 days ago
The biggest red flag that I see when it comes to fb stock is that it has single digit institutional ownership. Even yahoo has 75% institutional ownership. Fb has like 7% IO. Big money is staying away from fb and that is a huuuuge red flag.

Institutional ownership is a vote of confidence for the long haul. Mutual funds and pension funds buy long and cannot participate in short selling.

Big money knows something about fb long term prospects that all of us don't. I don't know what that is but their actions speak louder than anybody's opinions can.

1 comments

Has FB sold enough stock for IOs to get a double-digit percentage? Zuck alone is controlling over 50%, thanks to Andreeson. A more interesting question is, of the stock that's been made publicly available, what percentage was purchased by IOs?

(FWIW, I wouldn't touch FB right now, either. There are a couple of high risk issues I think they have to deal with, and I'm not sure they will come through unscathed.)