Facebook: Buyer Beware

Thu, 05/17/2012 - 10:45 EDT - Seeking Alpha

By Peter Mycroft Psaras: For those of you thinking about buying into the Facebook (FB) craze tomorrow I strongly suggest that you don't do it. The company is expected to go public at $104 billion tomorrow and news agencies can pump it up, brokers can pump it up and everyone looking to make a buck from it (who already owns it) can pump it up but there is a reason why Goldman Sachs (GS) is selling 50% of its stake tomorrow. The reason is that the numbers don't match the hype. I have analyzed the S-1 filing of the company SEC Filing for Facebook There hidden away are as they say "the facts Jack" and the numbers are far from impressive. At the end of 2011 the company had $470 million in free cash flow. So the company will go public tomorrow morning at: $104,000,000,000.00 and the free cash flow is: $470,000,000.00 104,000,000,000.00/470,000,000.00 =Complete Story »

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Facebook: Buyer Beware

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