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A comment on The market doesn't care about your overpriced valuation (Failbook). Parent comment

Re:The market doesn't care about your overpriced valuation (... by h1srf on Tuesday August 07, 2012 @11:04PM (#4353663)
Merrill shorted FB at the IPO? I seriously doubt that. First of all, I don't think there would be enough inventory to borrow for a few days. Secondly, the borrow cost would have been astronomical for those first few days. There was a WSJ article that talked about the borrow dropping from 40% to 6% about a week after the IPO. Are you talking about that period?
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Re:The market doesn't care about your overpriced valuation (... by robbiep on Tuesday August 07, 2012 @11:16PM (#4353696)
No h1srf I don't know anything about merrill shorting it, I was responding to wkasel's assertion in the second post of this thread that they did so. I have done no research regarding shorting on fb in this period.

However Morgans would have made a double killing in the post-ipo period having oversold the allocation and now being able to fill those orders cheaply on the secondary market (assuming they didn't issue new stock to fill the orders)

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Re:The market doesn't care about your overpriced valuation (... by wkasel on Wednesday August 08, 2012 @01:49AM (#4354136)
I back everything up with facts amigo. They shorted it $2.4B.

http://blogs.reuters.com/felix-salmon/2012/05/21/morgan-stan...

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