Daily Investment Tips

I have read many comments complaining why at $100 Billion value Facebook is over valued. The logic is, with profits of $1billion a multiple of 100 is wrong.

Take a look at tech IPOS of other tech giants, Google and Apple, that Facebook is compared to and you will say those companies where even more expensive during there IPOs.

Apple IPO PE ratio.

Apple Inc – today, the world’s most valuable technology corporation – went public at a valuation of just $1.19 billion in 1980, equivalent to 25 times revenue and 102 times earnings.

Google IPO PE ratio.

Google – to which Facebook is most often measured against in terms of potential – was valued at $23 billion at the time of its 2004 debut, or 218 times earnings.

This is my my thought about Facebook “It’s the next Google.”

written by Constantine Njeru \\ tags: Apple, apple ipo, Facebook, Facebook IPO, Google, google ipo, Ipo

If you read the news in 2011, most headlines was about how bad things were for investors, falling stock markets and European debt crisis. But the true is even in this crisis there were areas where investors made money. Investors who bought Junk bonds of companies such as Ford saw good returns, some stocks even out performed the market in 2011 (check this video of best performing stocks in 2011). The lesson here is, if you look at individual stocks you are likely to find value and opportunities.

Best Opportunities to Invest your Money In 2012

Facebook IPO in 2012

You can’t talk of investment opportunities in 2012 without mentioning Facebook. 2012 is the year this social network will go public. I have big feeling Facebook is another Google: it will keep getting bigger and bigger. Other tech IPOs in 2011, Linkend and Groupon, opened high on first day but came to down later. The only people who made money were the early investors and the few who were lucky to buy the IPO.

Buying Short Term Bonds

As rates go up, the value of bonds that have long dated maturities go down, sometimes significantly. For that reason, stick with short term bonds (both government and corporate), Inflation Linked Bonds (TIPs) and Floating Rate Notes. Once rates go up — and they have nowhere to go but up — gradually change those holdings into longer term bonds.

Buying Under Water Properties

There are millions of mortgages across US that are under water, the value of this properties have fallen low and the return on investment is now high. If you have enough cash and you buy this properties, you can get a good return renting out the properties.

Investing In Companies Catering in Luxury Goods

2011 was the year the middle class disappeared. Companies that target the upper end of the market have continued to do well. Stats indicate the number of super rich people has gone up, these group continues to spend on luxury cars, boats etc. Companies like Lululemon Athletica (targeting Yoga lovers) have continued to see year-over-year earnings growth at or above 50%.

Investing in Low End companies

As the middle class disappears, the majority of these people are finding themselves in the lower end. As numbers of low income people continue to swell, discount retailers such as Wal Mart will continue to do well.

To find best opportunities to invest your Money In 2012 you need to look at individual stocks and not the whole market.

written by Constantine Njeru \\ tags: Athletica, Best Investments, Best Performing Stocks, Cars Boats, Debt Crisis, Facebook, Google, Inflation Linked Bonds, investing 2012, investment 2012, Investment Opportunities, Ipo, Junk Bonds, Linkend, Luxury Cars, Luxury Goods, Maturities, Middle Class, opportunities 2012, Return On Investment, Stock Markets, Term Bonds

The eagerly awaited Facebook IPO could happen in first quarter of 2012. Wall Street Journal says the social networking giant is likely to go public during the first quarter of 2012. Facebook is aiming to raise $10 Billion in the IPO.

That falls in line with a May 2012 deadline when Facebook will be required to publicly report its financial information, regardless of whether it’s a private or public company.

The actual date of Facebook IPO will be communicated when Facebook files for the IPO and gets SEc clearance.

Facebook IPO could easily top $100 billion. And if that happen Mark Zuckerberg will be worth $24 billion. That will make him richer than Google co-founders Larry Page and Sergey Brin, according to estimates of their wealth by Forbes. Not bad for some still under 30!

written by Constantine Njeru \\ tags: Cnbc, Facebook IPO, Facebook IPO date, Financial Information, First Quarter, Ipo, Networking Giant, Nine Months, Social Networking, Wall Street Journal Facebook IPO

Carlyle Group, the private equity firm with $108bn under management, plans an IPO to raise more than $1bn.

Carlyle in June 2011 selected Citigroup, Credit Suisse and JPMorgan Chase to lead the IPO offer. If they keep to tradition where firms file their registration statements within two or three months of selecting bankers. Then Carlyle could list as soon as September 2011. The exact date of Carlyle IPO will be announced later.

Carlyle will be following the IPO path taken by other giant private equity firms, Blackstone, Kohlberg Kravis Roberts and Apollo Global Management.

Although private eduity IPOs were received with excitement, they have been a big let down. Most of them are trading below their IPO values.

written by Constantine Njeru \\ tags: Apollo, Blackstone, Carlyle Group, Citigroup, Credit Suisse, Excitement, Global Management, Ipo, Ipos, Jpmorgan Chase, Kohlberg Kravis Roberts, Lead, Path, Private Equity Firm, Private Equity Firms, Registration Statements, Three Months, Tradition

As Glencore IPOgets into gear, we look at behind the scenes of the largest commodity trader in the world.

Glencore was founded by billionaire Marc Rich in 1974 as Marc Rich & Co. AG. Yes, this is the same Marc Rich that was indicted on federal charges of illegally making oil deals with Iran in the late 70s. He was also notably pardoned by President Clinton on his last day of office.

Through a Management buyout, Mark Rich sold the company for $600 million. Today the company is valued at over $60 Billion. The company is still run by guys hired during Marc Rich days.

There is a good bio of Marc Rich at Wikipedia.

written by Constantine Njeru \\ tags: Amp, Billionaire, Commodity Trader, Federal Charges, Glencore, Ipo, Iran, Management Buyout, Marc Rich, Oil Deals, President Clinton, Wikipedia

2011 may be the year tech IPOs take off, and the first Tech IPO off the gates will be Linkedin. New York Times is reporting;

Linkedin plans to go public this year and has hired banks to advise it on the process, people with direct knowledge of the matter said on Wednesday. From NYT

The actual date for Linkedin I.P.O. is not yet confirmed.

Linkedin currently boasts about 85 million registered users. The companys stock already trade in private exchanges, it has a valuation of about $2.2 billion.

Maybe Linkedin IPO will be the catalyst for, Zynga IPO, Groupon IPO and the mother of all IPOs, Facebook!

written by Constantine Njeru \\ tags: Banks, Catalyst, Gates, Ipo, Ipos, Linkedin, New York Times, Nyt, Private Exchanges, Stock

written by Constantine Njeru \\ tags: Darling, Facebook, Goldman Sachs, Investing, Investment Analyst, Investment Bank, Investment Help, Investment Terms, Ipo, Lead, New York Times, New York Times Dealbook, Prelude

According to an article in deal book NYTimes there are 22 companies in the tech I.P.O. pipeline for 2011.

The five Tech IPOs 2011 to watch out for are internet sensations Facebook, Zynga, Groupon, Linked and Skype.

Non of these companies have confirmed going for a tech IPOs in 2011 but going by the level of public and  investor interest in these five the IPOs are around the corner.

For Facebook, Zynga, Linked and Groupon one factor showing a tech IPO 2011 is the significant demand for these companies stock  in the secondary markets, private exchanges that match buyers and sellers.

Facebook one of Tech IPOs 2011

Facebook has crossed 500 million members mark and reportedly bringing near $2 billion revenues for 2010. In private exchanges Facebook is now valued at $45 Billion.

Zynga one of Tech IPOs 2011

Zynga is heavily tied to Facebook. The company raised more money in 2010 from the likes of Google. Word out there is annual revenues are above $800 million. The demand for Zynga stock in the private market has remained strong.A zynga tech IPO in 2011 is not unthinkable.

Groupon one of tech Ipos 2011

As 2010 came close to an end Google unsuccssefully tried to buy Groupon. Groupon is now negotiating with Fidelity, T. Rowe Price and Morgan Stanley for another round of financing that could be as large as $950 million. With this investors looking forward to an exit strategy groupon could go for a tech Ipo in 2011.

Linked one of Tech IPOS 2011.

Although Linked is below the radar when it comes to news coverage, early investors eventual will want an exit. If Facebook, Zynga or groupon have a spectacular tech IPO in 2011, Linked will be hot on their heels.

SKYPE one of Tech IPOS in 2011.

Skype is the only one that has confirmed a 2011 tech ipo. On August 9, 2010, Skype filed with the SEC to raise up to $100 million in an initial public offering

written by Constantine Njeru \\ tags: 100 Million, Buyers And Sellers, Exit Strategy, Facebook, Fidelity, Google, Initial Public Offering, Investor Interest, Ipo, Ipos, Members Mark, Morgan Stanley, Pipeline, Private Exchanges, Private Market, Radar, Secondary Markets, Sensations, Skype, T Rowe Price

Zynga is the maker of Facebook games like Farm Ville and Mafia wars. The Zynga Game Network, as the company is officially called, is the hottest start-up to emerge from Silicon Valley since Twitter and Facebook.

If rumours are to be believed, Zynga is on a path to pocket as much as $500 million in revenue this year.

Investors hungry for another Google are asking when will Zynga file for an IPO or go public.

Zynga has not given a specific date for an IPO but one way to predict Zynga IPO is to look at the changes in shareholder numbers.

Once more than 500 individuals or institutions own shares in Zynga, securities laws mandate that the company go public. Google staged an I.P.O. in part because it hit that same threshold.

So, watch out the number of Zynga shareholders, once the number hits 500, the IPO date will be announced!

written by Constantine Njeru \\ tags: Facebook, Game Network, Games, Google, Institutions, Investors, Ipo, Mafia Game, Mafia Wars, Mandate, Securities Laws, Shareholder Numbers, Shareholders, Shares, Silicon Valley, Threshold, Twitter

While Mark Zuckerberg has refused to commit to a date when Facebook will file for IPO, there is a clue to predict Facebook IPO date.

An investor interested in Facebook IPO just needs to watch Facebook secondary market. Facebook shares are quietly sold in the secondary market even though most people can’t buy them. The going price has been about $76 a share.

Predicting Facebook IPO

Once more than 500 individuals or institutions own shares in Facebook, securities laws mandate that the company go public. Google staged an I.P.O. in part because it hit that same threshold.

So, watch out the number of facebook shareholders, once the number hits 500, the IPO will happen!

written by Constantine Njeru \\ tags: Clue, Google, Institutions, Investor, Ipo, Mandate, Mark Zuckerberg, Market Shares, Securities Laws, Shareholders, Threshold