I had the chance to buy some Facebook shares yesterday on the IPO. I declined to do so.
Conventional wisdom was that the shares were going to quickly shoot up to $70.00 per share. Instead they had to be supported by the banks to prevent the embarrassment of a drop in share price.
For a good part of my life I had a best friend named Ralph. He used to be a big politician in Texas. Sadly he died at age 58 of a heart attack. Ralph had an unusually large male organ. It had the nickname of “Big Bertha.” (This was the name of the giant German cannon mounted on a rail car that bombarded Paris in World War I.)
Ralph was always bragging about his exploits in the bedroom. One evening I talked to a lady who had gone to bed with him. She made the following comment: “He had all of the right kind of equipment but did not know how to use it.”
The same can be said of Facebook. They have this incredible resource of 900 million users. Their business plan is not good enough (yet) to mine large advertising revenues out of this resource. A lot more work needs to be done!