IPO Scams - How the “stock” industry has stolen billions from honest Americans
Monday, June 23rd, 2008Facebook founder Mark Zuckerberg and Rupert Murdoch are losing out on billions. If I were both their personal financial advisor, I would slap their faces and send them an incessant amount of pokes on Facebook, or alerts on MySpace! Online social networks are not as valuable as the market currently values them at. If MySpace has a market cap of say a few billion dollars and facebook as well - it would bode well for both organizations to go public and cash out. I say go public and cash out because there is only one correct way of doing business: and thats to make money. Going public will make both Facebook and MySpace (News Corp) money, its that simple. I can already see what the chart will look like for both of these companies. It will look something like the half of a mountain:
I got the screen shot above from Bank of America’s 1 month stock price on yahoo finance. Banks, lenders, title companies, etc… are all in deep trouble from mortgage fraud and default - hence why BAC (stock ticker) is like that of a half mountain. This is what Facebook and MySpace’s stock chart would look like if they would ever go public. Keep in mind that this would still unlock a massive amount of money for both Facebook and News Corp. Probably much more for Facebook than MySpace, as I believe the market will offer a higher P/E to Facebook because of it’s prospected growth.
Think about it this way, Google is worth about 5 times its IPO market cap - why can’t both MySpace and Facebook benefit from the same tremendous growth as Google? Because Google is the King of traffic and monetizes the ENTIRE internet as opposed to just being a publisher; which MySpace and Facebook are.
Regardless, again I think its important for MySpace and Facebook to go public because they would make a ton of money by ripping off the people that put money into investment firms (Bank of America, JP Morgan, Merrill Lynch, Goldman Sachs, etc….) that are stupid enough to buy a percentage of it. The stock market IPO game is one of the biggest shareholder and corporate dilution schemes in existence. Every year, dozens of companies go public and simply cause mom and pops to lose billions through the dilution of pensions, mutual funds, etc…. so schemer CEO’s can sell out their shares either immediately or within a few years.
It goes on quite a bit - and is indeed one of the smartest and biggest types of scams in the USA today. Companies like Google are worth 48 times the amount of money they earn annually. Therefore, CEO’s and founders are able to multiple their wealth into a “perceived” wealth 48 times over - therefore “cashing out” in a massive fleecing operation. The stock market’s participants have believed in this “system” for a very long time.
Let’s begin the revolution. If your financial advisory firm is interested in learning how Banner Blindness Inc. can help you develop research reports for online websites (Yahoo, Google, MySpace, Etc…) please contact us. We are certain that we can help your investors make smarter decisions when it comes to purchasing online-based companies in the stock market.










