Facebook Stock Could Hurt California (Montclair: buyer, salaries, income tax)

[yeahthatguy]

Originally Posted by blauskies

Yes, a company that failed because it decided to locate its offices and manuf. in a prohibitively expensive state and try to scale... evermore in a prohibitively expensive location and try to compete w/ Chinese solar companies in a no barrier entry market w/ an inferior product. Not only was their product expensive but it was garbage. Surprise, when you set yourself up for fail, most often you fail. O' and daddy money pockets Obama funneled this company tax payer dollars even against sound financial advice and against the boards who ensure money isn't wasted in garbage ventures .. Who says California doesn't get their pork spending ??

[user_id]

Nah. All the serious investors sold out to the suckers most of which aren't in California.

[yeahthatguy]

Originally Posted by user_id

Nah. All the serious investors sold out to the suckers most of which aren't in California.

If only it were true...

[Bulldogdad]

Originally Posted by Bulldogdad

So first the budget shortfall is underestimated by 9 billion or so because of overly unrealistic revenue projections.

Now another of the fantasy land, pie in the sky, hang your hat on prognostications that was going to SAVE California that isn't looking so good.

Facebook stock could hurt California budget - Associated Press - POLITICO.com

Facebook Shares Retreat Below $30 as Options Trading Begins

So tell me again how Facebook is suppose to save the California budget. And where are those 1000's of millionares?

Facebook stock plunge takes hundreds of millions away from California budget projections - San Jose Mercury News

Even a dumbassed landscaper like me knew this was stupid:

Gov. Jerry Brown and state lawmakers in June approved a $91 billion budget that included $1.9 billion in expected tax revenue from Facebook employees striking it rich -- a rare projection that helped stave off cuts to schools and programs for the sick, poor and disabled

And what is the stock price today? $19 down from the $38 IPO price.

Facebook down 40billion since the IPO and Mr Zuckers has lost 600 million, Dont worry though hes still got a few billion laying around. But for how much longer?

Facebook stock slump cuts Zuckerberg's worth by $600M - chicagotribune.com

[hoffdano]

It would have been fun to be in the room when the budget forecasters got together to guess how much tax revenue the FB IPO would generate for California.

I think they didn't know the IPO price at the time. So any guess would have been pretty much a WAG. And since the underwriters most certainly set the price too high, most initial buyers lost money on FB stock. So their tax returns probably showed a loss, not a gain. So FB may have generated little or no tax revenue considering some percentage of FB stock traders will end up with a capital gain loss.

[18Montclair]

The state is stupid for planning for future spending around the supposed promise of a FB windfall.

And any investor who approached putting money into FB(or any brand new company) with the thought that they were going to make a quick buck deserves to lose his shirt.

[nullgeo]

Originally Posted by 18Montclair

The state is stupid for planning for future spending around the supposed promise of a FB windfall.

And any investor who approached putting money into FB(or any brand new company) with the thought that they were going to make a quick buck deserves to lose his shirt.

How harsh ... I hadn't realize how cold you can be Monty

[18Montclair]

Originally Posted by nullgeo

How harsh ... I hadn't realize how cold you can be Monty

lol

Investing is best approached from a long term perspective. And my comment is not to the little guy but the investment and fund manager who should know better than to promise instant riches to his clients.

[nullgeo]

Originally Posted by 18Montclair

lol

Investing is best approached from a long term perspective. And my comment is not to the little guy but the investment and fund manager who should know better than to promise instant riches to his clients.

Well, okay then ... feel better now ....

[user_id]

This thread continues to show a fundamental disconnect with actual investing.......

California wasn't planning on making a ton of money on new buyers of the stock, after all most of these people won't be California residents and wouldn't pay income tax on gains anyways! They were planning on making money in the IPO, that is they were planning on making money from the current owners of the stock who just so happen to mostly reside in California. These people purchased the stock for amounts much less than the IPO and the current price of the stock is irrelevant, the original owners dumped their stock on the general public the first few days of the IPO. Did the state over estimate? Perhaps...but you guys are getting it all wrong....

Furthermore, c'mon folks, you can make money shorting just as well going long. You pay taxes on gains whether they are derived from a short or long.... There are also those crazy things called options....

Its sad how you guys try to twist everything into a negative, but in this case it just displays a fundamental misunderstanding of investing...