New York, NY - After 7 years, Facebook may finally become a publicly traded company, if their plans for an initial public offering are announced on Wednesday, as expected by penny stocks analyst Peter Leeds. Looking to raise as much as $100 Billion (or more) [CNBC], this may be the most highly anticipated IPO in decades, if ever.
According to Jack Otter, executive director of CBSMoneyWatch.com, the IPO will increase Mark Zuckerberg’s wealth by $20 billion, making him the world’s 23rd richest person. It would also turn thousands of Facebook employees into millionaires.
“There’s way too much hype,” states Peter Leeds, penny stocks analyst and the leading speaker on speculative investments. “We’ve seen it before with blue chips and penny stocks alike – the over-priced, over-hyped IPOs get driven up in price at first, only to come crashing back to earth a few days later.”
Leeds cautions subscribers to his penny stocks newsletterto avoid the Facebook IPO at all costs. He explains that the speculated Facebook IPO price is already much too high, and the massive demand for IPO shares will drive the stock even higher.
“After they finish what will look like a successful IPO,” Leeds mentions, “they will have to answer how they make money. And they don’t. They haven’t. And they possibly never will.”
Leeds also suggests that investors trying to be a part of this IPO will end up losing money, as the hype fades away, and the Facebook shares come back down to earth. He also believes that Facebook activity levels are starting to decline, based on the analysis of his penny stocks team.
“It’s a great company with a lot of value, but not as much as they’re hoping to get. Then with rampant, albeit ill informed demand post-IPO, the shares will be highly over priced. You’ll see exactly what I mean in March when Facebook has to release their financial reports, IPO or not.”
Source: PRWeb
