the gm stock price has foundered since its ipo in the fall of 2010. we are looking at a $25 billion loss. it is important to remember the loss estimates fluctuate on the gm stock price. it is important to also way the white house response. that is the bailout was not intended to make money for u.s. taxpayers. it was intended to preserve jobs. the white house and senate both predicted about 1 million jobs were saved by the bailout when you are weighing 1 million jobs versus a real risk to the economy, which is what bankruptcy of gm and chrysler would have entailed during a recession, the white house thinks it was worth it. they think about the 1 million jobs saved. they say it is worth it even though we will take a hair cut. the caller is right. we're definitely taking a hair cut. the treasury still owns 500 million shares. they wanted to exit by now. that does not seem to be practical given where the stock price is. they were looking to maximize returns to the extent possible. we will always be looking at a cost. host: a question about the vote and ho

i would not want to be on the opening print of the ipo. >> guy, do you think that the facebook ipo inimpact on the response or the reception to this one? >> for the retail investor? without question. but i went to a man-u game. it was a chairly shields match. >> we're standing in front of old traf frd here. >> if arsenal goes public, i'll buy it. >> seema mody is tracking the comments. >> simon, man united has a huge following on twitter but the ipo not so much. let's get straight to the tweets. sports teams i've never been a long-term growth story and man-u priced as one of the most expensive. his rating is sell. no way. they're way better steals out there with stronger fundament fundamentals. this is my favorite. i support manchester united but the ipo is an idiotic public offering. when you look at facebook, scott, it also has a strong following, a global brand. priced too high and disappointing ipo say to the least. >> let's get your talk. would you buy in to the ipo as an individual investor? >> if you want nice certificates to put on the wall, it's great. it's an emotion alibi.

the big item that everybody is talking about is data. two recent ipos were around the data themes and analytics theme. that's yet to come as we see the billions of devices and the massive amounts of data being generated by these devices, by machines, by people. and we have a lot coming down the innovation pipeline here in silicon valley. >> i don't hear you say social media. is that a broader statement? >> social is part of the fabric. i don't see social as an investing theme. i see peer to pier communication. the individual -- us as brands being able to listen to individuals at the individual level. and the amount of data generated by social. social itself is not the forward-going technology themes that we are investing in today. >> give me your thought, if you would, on what going on with apple. biggest company now ever. >> it really has a dramatic impact on what's coming next in silicon valley. apple's margin to the enterprise is the story most people aren't talking about. today about 20% of enterprise users are using an apple computer on their desk.

the flash crash, the fast ipo, the facebook ipo, the knight software glitch that nearly caused that companybusiness and i'm sure there are thousands more incidents that just simply don't get reported because they're not that big? >> right so you know i think it's beyond kind of worrying whether they will take over wall street. they have taken over wall street. and the ones that you talk to, facebook, knight and so on, they're the ones that we sort of come to public consciousness. there are 18,000 of these that happened that are microcrashes or ultrafast black swns and they're happening every day. >> i'm curious what your thoughts are about this concept where we have to get used to the fact that the machines aren't leaving, the exchanges went for-profit and these are their best customers. doesn't it make sense under these circumstances to recognize that your natural advantage as an investor is to lengthen your time horizon, pay less attention to short-term intraday moves? >> for me? >> yes, sir. >> yes, i think that's exactly right. you know, the machines do the high frequency trading and le

that is down, cut in half, from the ipo price, of course, you know where that was priced. courtney reagan looks at the continuing fall out now. >> yeah, it's unbelievable. all of our expectations continue to be surprises from where this stock has gone from the initial build up to the ipo. we did touch 19, that's half the ipo price, it looks like just a nickel above, but beyond facebook, there was more going on, believe it or not, despite a very narrow trading range. it is the narrowest that we have seen. it was the small caps that went out. the russell 2,000, and the nasdaq following. crude oil was up almost 4% this week. love $96 for the first time, but oil stocks were down. this is the first time that it fell in a week that crude oil rose more than 3% since february of 2011 and last but not least, if we can skip to the last element, i have to show you shares of michael kors up almost 23% in a week. what a outperformer after earnings. >> thank you so much, courtney reagan with the latest there. the state of the jobs market will be a factor in the presidential election. the

the ipo was a better run ipo, expectations were lower. so what investors make the in is take of thinking is that they know a company because they use it. and they get excited about the hype. you got to go back to fundamentals, if you don't understand the business model, you have to stay away and not too many people understand the facebook business model at this point. >> john, what do you do with any of these names? is it time to get in? is it time to never look at these again? are you afraid when you see a zynga approaching a $2 a share, when facebook trades barely above $21, half of where it was the day it opened on wall street -- what are you to do as an investor who hears a lot about these names and who doesn't know what the hell to do except watch their stock prices go down day after day. >> i'm going to agree with gilles that i haven't seen the big flush. i have seen the big funds that own tons of this stuff, still and they have to be cursing themselves that they do own it. but these guys have lately judged, come in, bought the 20-pu

the ads seriously. ads in facebook simply doesn't work that well." another person wrote in "ipoas priced wrong but it was hard to know with all the hype, not cnbc type" we thank you for that, by the way, "just stock hype like that follows apple." another says "fb did not go wrong. merely they were highly valued at $100 billion, for the company they are, the true value is prevailing." >> if you're an early investor you can understand that but if you're a director which makes you a leader, at the same time telling the employees to stand pat with this, have faith in the long haul, terrible timing. i can't believe the signal thiel is sending to everybody else. >> what do you think the conversation is between zuck and thiel? >> strained. >> do you think he's been bracing for this? >> it's a bizarre conversation. maybe they knew this ahead of time, maybe they didn't. thiel apparently planned it before the ipo but i don't know who he had to tell the company. >> i don't know what the disclosure rules would have been related to this. employees don't get to start cashing out i believe unt

of the new ipos, there are five of them. ur are coming from private equity companies that are bailing out into the market and selling at least 50% from selling shareholders and applying the rest to debt which is to probably pay dividends that the private equity people took out of the company. manchester united is one of those. as you said, they want to come public at a $3 billion market cap. there's no way that will happen. they have to mark it down. i think they're living on, you know, last year or something or other because when they announced their june year earnings and revenue what i noticed was that the revenue was down 4% and usually if an ipo is going to be successful, what it does is it spreng boards into the ipo. i think man chester will belly flop. if you look at the operating percent of revenues, 22%, 19%, 10%, that's down, down, down. the net income has gone 75 million, 25 million, minus 10 million for a tax credit. definitely going the wrong way. if you look as a sports entity, the manager, alex ferguson is a ge

comes after the debacle of the facebook ipo. and some very public and very strident comments of knight's ceo as to the technology issues that nasdaq faced. >> my point is that this was a mess-up. somebody caught to be fired over this and the company should be in danger, that is remarkable to me. >> i think so. >> most unfortunate. >> it is most unfortunate and especially for those holding the stock and the people behind us here at knight. following that story throughout the hour. now kenny polcari is joining us now. he is the managing director at icap and gives us thoughts on the top three stories that we just talked about. you know, mario draghi made some very bold statements last week about what the street could expect from him. he's obviously in the short term disappointed. are you at all encouraged by the fact he's laid out somewhat of a master plan? >> i'm not because this is not the first time that we've seen this happen. right? they create the hype. the market is excited. they lay out the master plan. kick the can down the

his share was planned prior to the ipo. he told 20 milli$20 million wor shares and still owns 5.6 million shares and made more than $1 billion from this investment in the company. no one's crying for him. it does beg the question even though it's pre-planned. we did ask julia, i asked julia on "fast money" when this news was crossing if peter thiel could have decided to opt out of the sale of the shares if the stock were doing better and you can. >> you can cancel these plans. i'm familiar with these plans. the board should have gone to thiel and said, listen, as a -- we know there's an exception where you can go in and say, listen, i'm not selling it here. i would have thought zuckerberg would have pressured him and say, listen, this is really souring, and even business and customers turning away from us. this is a bad move. anything goes with the rich. if you're rich and in the valley, you're not bound by any rules. it's not illegal. there's some things not illegal that are also bad. this is bad. >> if the cfo is making ro

the show. another reason ipo having some trouble today. let's go the market flash desk for the details. >> good afternoon. we're watching manchester united down 2.24% on the day coming off it's intraday low. made its debut last friday closing flat at 14 where it priced. yesterday the club acquired a soccer star for $33 million. this was creating some buzz. bob pisani reporting earlier the drop because of the syndicate bid has been pulled. >> you bought this ipo also? i did. i was in and i didn't write it up, if you remember the stock rallied over 15 up to 15.30 was the high print. >> giant pop. >> compared to facebook it was phenomenal. >> facebook trade up to 40. >> looking at that -- >> or whatever. >> nobody wanted to be long on this thing when it came back down the cindy indicated bid. where is the going? we were on. missed the 15 glad to be gone. >> you wouldn't get back in. >> no. when i called in i was in there for trade aaspect because i thought the deal would be priced better. . >> coming up on halftime apple and google dominating

the optics of this before an ipo. does this tarnish the ipo?ance the ipo because they took decisive action? >> you know, i think it does. i think the board did the right thing. something brought to the attention that might be inappropriate and asked what should we do? we want to handle this right. we want to send a correct message to shareholders that that they're responsible and employees and no favoritism in the company and a right way to handle it. again, there will still be a relationship with the former ceo. he's the face of the company. remains in the catalog and still a relationship there and i think from a pr standpoint they had no other choice. >> yeah. kay kayla, do you think it affects the pricing on the ipo or not? >> i don't think. i think they'll get a better price on the ipo because investors asanassauged that gar will be there. >> ashley, would it have made a difference if it's a female ceo and a male worker or not? >> you know, i don't think so. i think that, you know, boards have zero tolerance for this these days and i don't

there were obviously glitches in the entire ipo process. that really scared a lot of people. and then they seemingly haven't gotten people to understand the grow story and the potential in terms of total addressable that they have. you add that to the fact that yes, there has been a lot of negativity and these lockup expirations have been coming and there really hasn't been a lot to get excited about on the positive side. we expect that to change perhaps in the coming weeks and months as its company becomes more proactive in talking with the investment public. >> and scott wa, about mark zuckerberg, is he the right person to be c.e.o.? i hear a lot of chat their maybe it's time for him to stepside. >> you know, i don't know if that's the case. obviously this is an 8-year-old company and mark zuckerberg has been running it from the get-go. we think that maybe he wasn't as engaged as the ipo approached him throughout that process but if you listen him on the q2 conference call we think de a very good job of articulating his level of engage. as well as his vision for the future.

stock, though, still a big loser since the ipo. jumping today, however. before the break, five big names that are moving today. we have a gain in microsoft. almost 4% in hp. and almost 3.25% in cisco. back in a minute. to follow? the equity summary score consolidates the ratings of up to 10 independent research providers into a single score that's weighted based on how accurate they've been in the past. i'm howard spielberg of fidelity investments. the equity summary score is one more innovative reason serious investors are choosing fidelity. get 200 free trades today and explore your next investing idea. syou know, i've helped a lot off people save a lot of money. but today...( sfx: loud noise of large metal object hitting the ground) things have been a little strange. (sfx: sound of piano smashing) roadrunner: meep meep. meep meep? (sfx: loud thud sound) what a strange place. geico®. fifteen minutes could save you fifteen percent or more on car insurance. get 3 yeaon brand nameree financingmattress sets. plus, get free delivery and sleep train's 100-day

remember the facebook ipo fiasco and now knight saying that they're having technology issues. the things to connect the three points, these three occurrences is interactions of trading systems and problems occurred an enwhat we need to do is we need to improve the interaction of trading systems and, mandy and brian, we need to build in redundancies to make sure that the systems are intelligent and instead of routing orders to the people on the floor, thank heavens they caught the problem, maybe somebody stopping it from occurring in the first place. >> maybe you need to be in charge. you have it figured out. >> are we relearning the value of the human being? >> everybody knows i'm in favor of human beings watch things. we are not going bab to human beings needing trading. we need trading through computers. but we need to build in more robust systems. they're all connected to each other, all these training systems and glitches of cur with problems of software. that's probably what happened today. we need to improve the software. we need to have more people working on that. i do

fire at just over $20 per share that it is now down over 47% from the ipo. the once sparkling bailey deal website groupon closed at $4.64 yesterday. that is down 77%. that reminds you of the dot com boom and bust. >> contrast that with apple which is soaring right now >> the thing about the social media companies, and they were speculative bets. sold 20 million shares of facebook when the first opportunity came up. he had sold 60 million shares during the ipo. facebook stock stands at $20 per share. the ipo was $38. i imagine he has a couple of dollars in his back pocket. >> buy low, sell high. it gets exciting when you have facebook coming on like that. back to the weather. around the bay area we have fog and drizzle out towards the coastline and it looks like it will break up in most spots. if you're headed out the door, dense fog over skyline boulevard. '60s and '70s around the bay with some sunshine. it looks like around the state, as high as 101 degrees. 91 in sacramento, 93 degrees in yosemite. the sky is beginning to clear out a bit. the next few days,

secondly the $20 ipo price may be just what's called the price talk. what the initial price they are thinking of, not the last price the way the deal comes. if demand accelerates you can hear the price move up over time from 20 to 25, 25 to 30. i may like the ipo at 20 and not like it at 30. that's not much different from liking a stock at 20 and it's already trading and it's a sale at 30. because out's gotten too expensive. layer on a third variable f. the bankers want the stock to pop or generate a hot deal one that immediately goes to a premium from where it opened after it opens, premium from where it is priced after it opens they can hold back stock. this is crucial. say xyz has 50 million shares. the bankers after canvassing the buyers, talking to clients, getting indications of interest might sense that while the company has 50 million shares there is only demand on this ipo for ten million shares to be sold if it is $20 per share. they issue 50 million and the stock might wallow. but the opposite is true, too. if they cut back the number of sha

the price in the ipo was an artificial price. nothing really to do with the fundamentals. i still think you have to wait a. and by the way, scott, more leg lockups expiring by the end of the year. >> i got you. are we being unnecessarily harsh on facebook and zuckerberg? stock had some problems since it got out of the gate for a number of reasons. 00 million users. they're going to figure out mobile. >> really? >> they are. they are. >> okay. less revenue. >> come on. >> listen. the valuations, the fundamentals that washs cessed prior to july. we talked about wait for earnings to come out before you made a decision whether to buy the stock or not and the importance of those earnings were incredibly high. revenue growth slowed in operating loss. and the corporate governance, the management team, the strategic direction? where is it? you would be crazy to buy this company. >> john najarian, you bought face back. you already showed them love. >> i'm crazy. >> is wall street being too har snsh. >> no. i think you heard carly fiorina and gordon bethune on the air. talking about

>> i start with the time of the ipo. we upgrade it in june when they could add to the growth of the top line. >> would you buy it again at this level here? >> well, it's really risky right now because of the share overhang, and this is going to be a problem. you want to talk technicals, 1.2 billion more shares coming on to the market, they don't demonstrate to the market that they're seeing incremental growth. >> i would probably only buy if we close on a daily basis above $20.10. if you do that, you could see a bit of a pop up to this gab that goes back to jug, and that's around the $25 region. if you bottom pick it, it could be dangerous. >> brine, what will it take for investors to be more confident in this stock? >> i think the country needs to come out with better metrics, and there really isn't a good understanding of the fact that the new products are exchanged, mobile sizing, and they're adding hundreds of millions of incremental dollars. that has not been well communitied at this time. >> adulthood to see you all

i still think there is a lot more to be told about how they handled the facebook ipo. >> i think it is interesting. if they can get the facebook issue behind them which is a big if, and i suspect they will probably have to pay out more. they started off by offering 20 million. now it is a little over 60 million. maybe it is more. if they can get this behind them, they're growing single-digit operating income, double-digit earnings growth. they have a lot of excess cash, and they just bought back 8% of their shares or just announced a program so i think it is interesting trading where it is at a discount to historical -- >> there are some people that argue exchanges shouldn't be public at all. >> there is that. i will go by if exchanges are still allowed and approved i think the actual stock valuation is interesting. >> all right. more and more u.s. investors are looking abroad for growth and opportunity as a strategy of diversification. as geopolitical engs its around the world heighten, some are asking if the risk is worth the reward. welcome back for that story. >> that's exactly rig

in fact, the biggest ipo new issues since the facebook ipo. a state of the market here. the context, though, the strongest week for ipos since facebook? how has the market been overall. >> the ipo market, not long ago, in mid-june, it looked like the ipo market was in real trouble for the summer. 0 for 4 in june. at the end of the month, there were four transactions priced. that continued through july. successful offerings in july. as you stated, this week there are five deals on the calendar. we got off to an okay start last night. >> in terms of how to judge the success of these ipos post-facebook, they cut the number of shares that it's issuing, i mean, how can we start judging this new wave post-facebook. >> keep in mind, bloomin' brands, they increased the primary shares. it's increasing from the company's standpoint. you cut the number of shares being offered by the secondary the selling share holders. >> all right, in terms of looking out beyond this week in terms of the pipeline, are there particular sectors, it seems to be ck, bloomin' brands, restaurants, are t

stocks down more than 40% since the ipo back in may. ook's business model? joining us from chicago is rick summers. also our very own julia borsten. rick, the population of eequipment is having fake accounts on facebook. >> the issue of measurement has always been an issue. what's that audience? the audience may be a little smaller than we talked about, but 800 million to 955 million, that's still a massive advertising audience to be reckoned with. >> julia, how do we get all these fake accounts? what is the makeup of those fake accounts would you say? >> a different category. the biggest category is duplicates. then there are misclassified accounts. there are people who are going on there and creating an account for their cat or their dog or creating a second account they might use for a business and it should be categorized as a business page instead of an account. and the third category are spammers. that's the smallest category of these three but obviously facebook wants to make sure none of these three categories exist. the whole si

. >>> and football club prices sends the ipo below the expected range as it gets ready to list in new york. >>> and prudential is due to release first-half results in 15 minutes. we'll speak to the ceo of the insurance giant first on cnbc in half an hour. >>> okay, welcome to the program and the week. we're in the last week of the olympics and we have oil data out at the top as well for you. the iea is saying sluggish economic growth could restrict annual oil demand growth to just around 900,000, a million barrels a day in 2012. they say globalized oil supply grew only by 300,000 to bring it down to 90.7 million barrels a day, while opec crude supply fell slightly, oil prices have gone since july and early august since extending earlier gains. >> and cutting the necessary opec output to just 400,000 barrels a day by the end of the year, ross. >> yeah, absolutely. so, prices are down today as we go through that. we will have more on oil prices with our guest a little later in the show, so keep our eyes on what's going on with that. of course, it's interesting, brent was down into the 9

we'll start with the ipo mania. in bob pisani for the latest on manu. >> they are in heaven with the high frequency guys. here's manchester. prices at 14. opens at 1405. it's trading between 14 and 14.04 all throughout the morning. and we're almost hit 20 million shares. wait a minute, they priced 16.6 million which almost trade at 20 million. how did that happen? because it's a high frequency trader's dream. there's a syndicate bid at 14. they're supporting it at 14. so the guys who are high frequency traders know they can buy it at 14, 14.01 and sell it at 14.02 and they collect a rebate. if it goes below 14, it's not at least in the short term. it's very, very limited downside. so you just keep doing this, turning it over time and time again this morning and that's how you get up to 20 million shares changing hands. bottom line, though, the company did make it public and you get the iconic brand. you've got one of the big sports franchises in the whole world. you've got the value of very high level sports transmi

the facebook ipo debacle. the bats ipo debacle and now this. annot be good for the psyche of the individual and the smaller investor, who sees all this and wonders, what the heck is going on. why am i hearing about this all the time? >> it isn't good for everybody. but i think that what we need to do is figure out how this doesn't happen any more. i mean used to, mistakes used to happen all the time. we used to stop mistakes in individual stocks on a daily basis. if we can just figure out a market structure that prevents this kind of thing from happening. it's very unfortunate that we're in a situation where a software glitch, like a miss on a test can cause a firm to have this kind of problem. >> joe? >> let me ask you, i was part of it at the nymex exchange, how culpable are the actual exchange. back in the day i was able to take my server for $20,000 and go put it on the cme, directly or whether it was i.c.e. itself. the exchange themselves, there's culpability, isn't there? >> i don't want to say that the exchanges are culpable, but they're

and these are only the ipo. these are the only the one that make it large and actually launch to the stock market. but before going the ipo, they pass through intermediary stage, they convert from an ngo to a for-profit company with shareholders. so the idea that we're an ngo, we don't make any profit, how can we be evil. it is flawed. it's the standard law many microfinance. you start as an ngo. you get soft owner money in. lots of donations. grants, all these. you pump the money in and build up -- you can't call it equity. equity is a for-profit concept. you build up reserves. you can can extremely profitable as an ngo. you can't distribute the profit to shareholders. there's nothing stopping you converts to a for-profit share holding company at the later date. it's called transformation. this is the big holy grail. what is the first of the lesser of the two holy grails. build up the institution with soft, nice donor money. convert it to a for-profit institution. all the shares are distributed to the management

whether you take the facebook ipo, the attempted bats ipo, bring in the latest instance and certainlys? >> absolutely not. the markets have benefitted tremendously from a dramatic reduction in trading costs over the last decade brought about by technological innovation. compare the market structure today to the way our market structure worked a decade ago when spreads and trading costs were dominated by monopoly specialists on the new york stock exchange. the costs day in and day out for trading equities are tiny. and the blemish here is really a cost that's going to be incurred by knight. i think that's crucial. >> doesn't the investor pay a steep price as well. doesn't the psyche of the individual investor watching right now pay a steep price as well? >> well i don't know about the psyche. but i know that a buy-hold investor who is following long-run investment strategies, is not going to be, should not be affected by these, by these, by these sorts of actions. where our regulators really ought to focus to the extent they want to improve the markets, and reduce trading costs to inve

right now they are saddled with $660 million in debt, but gill said he is comfortable with the ipo rangethat the price is holding up, but what do the fans think? they have interest in this, because they want to win the games and the investors want to make a profit, and gill said that the two goals are not mutually exclusive. >> they are both related. manchester united has never deviated from being a football team, and we maintain what happens on the pitch is crucial, and if you do that the opportunities off of the pitch on the broadcasting side or the sponsorship side are real and apparent and there we fully understand what happens on the pitch having a great players and playing attractive and winning football is crucial to the business goals and we will continue to do that. if you do that, the fans are happy and the investments will be happy. >> so michael, even though you don't see the man-u share taking off like ipos like linkedin where it doubled on the first day of trading, they have held their own and not fallen below the $14 ipo price. micha michael? >> i should point out, alison,

been involved in the company one way, shape or form for a lot of years before the ipo. a lot of investors cash out. right? >> no, no. there's a good piece this morning in bloomberg. facebook director, competitor, so far. the share sale lacks precedent. 40 biggest technology ipos since the end of 2010, very relevant, only facebook and the underwriters let the backers out this soon. 39 said no to this. this is not business as usual and it's certainly, certainly within of those things that i think the underwriter should have said you shouldn't do it and the rest of the directors to pressure. i'll never let him on another deal again. >> do you think he should leave the board? >> yeah. yeah. i think he shouldn't have been on the board to do the sale. what's it say? facebook people go out and on the road and tell you how valuable it is. julia's excellent piece, so valuable and terrific. why's the smartest guy other than mr. hoodie zuckerberg himself we don't know because he's awol, doesn't he see the long-term value i thought we had here? suddenly feel like a chump if i though

if you are an angel investor you tend to exit soon after the ipo. i understand i don't believe we have excel actually selling. >> we will talk to you later on in the show. >> i have seen sales on facebook sales sold. >> good point. thank you so much for that. peter selling 22 million shares on thursday. the first day of the lock up expiration for facebook. >> you know what this is like? back in my brokerage days, we did spot secondaries. by the next morning you had it placed at 10:in the morning. >> is that a good sign in your view that it is disclosing, granted it's a preplanned sale. 22 million shares sold by an early investor in facebook. the stock is not moving. for a trade, the trough in facebook could be in but you will have a tremendous amount of overhead resistance. this is a trade. >> the drama at best buy builds. is there anyway to make money off the battleground stock. stay tuned. looking for a better place to put your cash? here's one you may not have thought of -- fidelity. now you don't have to go to a bank to get the things you want fr

in fact, the ipo filed under the name fva ventures. now, in the controversial world of multi-level marketing, this one is note worthy for a number of reasons. first, its sales in first six months of the year rose astounding 450% to $326 million. the customer count up 500% to 1.2 million. it's got a 71% gross margin. but -- there's the but. a small number of sales people and aptly enough calls promoters making up more than 10% of sales. one who's one of the founders makes up more than 50% of sales through the upliner down line and the 35-year-old ceo and co-founder telling a rags to riches story as being a gang member and filed bankruptcy in 2005. there's a lot going on in this. lots of moving parts. the real question getting this kind of growth, this quickly in an mlm company, brian and mandy, how sustainable is it? >> i have breaking news on nu skin. >> do you? >> crossing the wire right now. can we bring it up? stamford with a cease and desist demand to nu skin enterprises citing improper representation of their relationship. i have

were you a bull on the ipo or bullish now it's been cut in half. >> i certainly wasn't a bull at the this will go down as one of the most massively mismanaged ipos literally in history because it completely tarnished what was a viable brand. the fact is not a whole lot of those billion users of facebook said, you know what? i'm going to cancel my facebook account because they messed up their ipo. there might have been a couple. this is still a $40 billion plus market cap company. i don't know what it is today with a 5% rise. 30 times earnings, you don't buy a company like this because you think the valuation lines up with today's earnings, you think it's going to line up with tomorrow's. i know people get worried that sounds awfully like 1999. there are such thing as growth companies creating new markets and new businesses. that's where you have to have some defwree of faith that if they were able to build a billion users in seven years, that they're going to continue to be able to monetize that in a way that makes this a viable, ongoing enterprise. >> zach, let's face it. this is a

however, the president of the association of realtors thinks these ipo beneficiaries learn something from the bust. >> they know they need to save for the future, they swril families and children to put through college. they want to focus on things that will patter. >> the big unknown is how will stock price be impacted by investors cashing out. at the price, it's believed that inrestor who's missed out on the ipo back in may may face a good bargain price z a lot will depend on what investors think about the long range prospects. >> there is one of the largest companies in the world pledging to remove toxic chemicals from cosmetics. johnson and johnson made that announcement today. the brands include baby shampoo and aveeno. they expect to have product reform late bid the end of 2015. and parts of the nation are enduring worst west nile virus season since 2004. the dallas texas area is hardest hit. the mayor declared a state of emergency today nearly half of the 693 cases have been reported in texas. so have deaths. major break outs in indiana and right here in california. and contra

people had targets in the stock when it ipoed in may. now they're hitting the teams. >> let's get the rest in here. >> i think that there has been a lot of speculation since well below the ipo that this was an overpriced stock but they are not really the issues here. there is just too much stock is really the biggest problem. you can have an overpriced stock for quite some time. there is really no hope for it and people who are in it, they start to bail out, that creates more supply and lock outs expiring. so regardless of your fundamental outlook you have to recognize when there is nor stock for sale than there is to purchase, the stock will only go in one direction and that's lower. >> an evaluation is still way too high. today, everything was higher exempt for two thingss, facebook and the vix. people think it will pull a facebook from today. it's just now kind of a joke. >> i will tell you what turns it around. the sentiment has gotten so bad so quickly. where were the analysts months ago. the lockups were always well disclosed. a thr

so you didn't jump into the facebook ipo. is there a message going forward, any warning signs that investors could look at and perhaps stay away from if they're worried about the same thing happening? noo i would recommend a look at recent ipos for the company you're considering in your industry or similar industries, what valuations were applied to those ipos, how did those ipos perform and look at the comparable valuation for the ipo you're about to invest in. >> in the mean time may i friend you on facebook? >> yes, you may. >> it's been a pleasure talking to you. >>> well, coming up, just miles away an update from the straits of florida as diana closes in on a world record and the comedy world has lost a legend. as the word spreads of her death flowers were placed on her hollywood star of fame. a look back on her humor as her trademark next. wow, look at this bed! this nightstand! this wardrobe! what are you doing here? you're in ikea. my dream bedroom is in ikea? yes. what's that bedroom over there? that's your husband's

this is something he worked out prior to the ipo and facebook had expected that most of the shares will be bought by other investors on the retail level. the stock market is off to a positive start. apple shares are heading higher up another 1%. the market cap is now worth $632 billion. the dow gained 12 points, nasdaq is up by 13. facebook stock heading lower this morning, just over $19 per share. >> 400 million on a half million investment. >> time now for a look at what is coming up later on cbs this morning >> as you just reported, facebook shares are falling once again after hitting an all-time low on monday. we will ask an internet entrepreneur who says he saw this coming from the very beginning. jim cook has been brewing sam adams for more than 25 years and has watched the craft brewing industry explode. joan rivers will be in studio 57 to remember phyllis diller who died yesterday at the age of 95. those stories and more at 7:00. >> it is 650, let's get a quick look at the weather. >> more delays at sfo. low clouds and fog out there. delays of over one hour for arriving flights.

what did you make of the ipo? it was a debacle,ly not comment on what the under writers did, they raised capital for facebook. on that level they did their job. you can argue if they should have raised the offering price -- what about peter teal getting rid of all of that sock. >> i was surprised. as director you have a responsibility to the shareholders of the company. when you share your stock you're sending a negative cig mall. i don't know what his issues are, respective of that, it was a negative and bad signal. >> do you believe there needs to be changes in investigate in order to achieve the price target you're after? >> i don't think so, i think mark zuk ckerberg is doing a go job. i don't think we need a significant change as far as management. >> is there a lock of vision expressed publicly? doesn't he need to tell the rest of the world? >> i think he is. he's meeting with a lot of investors from what i understand. >> did you say you expect them to now go into online search like google? >> i do, i see si

that is down from the original ipo of just $38. e drop was spurred by the first wave of shares being unlocked and available for sale. 251 million shares were released to the market that adds to the 421 shares that the shares are owned by early investors and company employees. gabe slate takes a look at what facebook needs to do to turn of the round and how this might affect facebook users. >> when a company goes public there are a number of shares that are frozen they're not officially on the market, they're not able to be sold they are in limbo. these usually belong to in fighters an investor and employees of the company that will stop before the ipo. the first of three lockout. a facebook stock have expired. >> that means more people are selling their shares. and that means they will face down. >> been is to be safe--been has been keeping a close eye on facebook. >> facebook is doing this first wave at 90 days after their ipo. be more wave to come. one of the biggest is in november when they are out about $1.2 billion and they wil

ubs suffered a loss of $360 million because the price plunged following the ipo. the loss pushed profit lower for the april to june quarter. >>> several financial institutions have taken legal action against nasdaq. the swiss bank is also to file a lawsuit. >>> time to get a check on markets now. the u.s. stock prices ended lower after a choppy lower ahead of policy meetings. the dow joins industrial average was down a half percent at 13,008. let's go to the tokyo stock market. there seems to be a lot of market focus on central banks. >> yes, indeed. a lot of focus on the federal reserve bank and the european central bank. a lot of investors think that the fed may hold off this time because there was improvement in the housing sector data and consumer confidence in the u.s. which rose for the first time in five months. slightly improving data there which the feds should be taking in before it makes a decision. let's look at how that is translating into the opening levels this wednesday. both indexes trading lower there. topix at 729. with markets looking at the fed

, the bass ipo, the flash crash and all these other events that seem to be striking a blow to investor confidence. what do you say -- >> i think there are issues within the technology, all of this stuff, all the digital revelations, i think there are issues within the technology that should be looked at and should be approached with caution, and i think the regulators are doing that. i think they responded to the nasdaq/facebook thing and i think mary shapiro was informed and involved in this, and i think the regulators are doing what they should do. and i think that's, as tom expressed it this morning. >> good to see you. >> good to see you. >> we appreciate your time. kurt bradbury is the coo of stephens. let's bring in another executive who came to knight's rescue, the president and ceo of steeple nicolas. welcome to the halftime show. good to have you on this busy day. what i know is a busy weekend for you. >> glad to be here. >> why did you come to the rescue of one of your competitors? >> look, knight is a market participant. and they needed the help, and we're glad to be there.