Not All Company Directors Will Shaft Investors
My Facebook (FB) rant, inspired by the monster insider sale of stock by director Peter Thiel, has certainly made the rounds, and for that I am most gratified. While the sale was totally legal, it stuck in my craw because it was so at odds with what was supposed to be the long-term value of the enterprise. If the company really is worth much more than it is selling for, as the executives tell you, then the sale seems counterintuitive, and we have every right to be angry about this decision to sell from someone who is playing with the house's money.
It is a reminder that in the annals of the web, Facebook seems almost as if it is a cocktail party site, a site where you chatter away. But it is not a purchasing site. That's Google (GOOG) with its superior search for what you want, that's Amazon (AMZN) with the cheapest prices, and that's Apple (AAPL) with iTunes. You don't go to buy things at a cocktail party, so Peter Thiel may be dumping because he understands that Facebook's mobile seems like a flop and that the site is reverting to an online cocktail party, and I thank him for telling the truth about the company with these sales....285 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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