Facebook IPO a Trap for Investors According to Penny Stocks Analyst Peter Leeds

The much anticipated Facebook initial public offering may be announced as early as Wednesday, according to penny stocks analyst and leading speaker on speculative companies, Peter Leeds.

Raleigh, NC (prHWY.com) January 31, 2012 - However, Leeds cautions investors to shy away, because this over-hyped IPO may create some massive losses for investors, as he has seen with other similar events in blue chip equities and penny stocks alike.

After 7 years, Facebook may finally become a publicly traded company, if their plans for an initial public offering are announced on Wednesday, as expected by penny stocks analyst Peter Leeds. Looking to raise as much as $100 Billion (or more) [CNBC], this may be the most highly anticipated IPO in decades, if ever.

According to Jack Otter, executive director of CBSMoneyWatch.com, the IPO will increase Mark Zuckerberg's wealth by $20 billion, making him the world's 23rd richest person. It would also turn thousands of Facebook employees into millionaires.

"There's way too much hype," states Peter Leeds, penny stocks analyst and the leading speaker on speculative investments. "We've seen it before with blue chips and penny stocks alike - the over-priced, over-hyped IPOs get driven up in price at first, only to come crashing back to earth a few days later."

Leeds cautions subscribers to his penny stocks newsletter to avoid the Facebook IPO at all costs. He explains that the speculated Facebook IPO price is already much too high, and the massive demand for IPO shares will drive the stock even higher.

"After they finish what will look like a successful IPO," Leeds mentions, "they will have to answer how they make money. And they don't. They haven't. And they possibly never will."

Leeds also suggests that investors trying to be a part of this IPO will end up losing money, as the hype fades away, and the Facebook shares come back down to earth. He also believes that Facebook activity levels are starting to decline, based on the analysis of his penny stocks team.

"It's a great company with a lot of value, but not as much as they're hoping to get. Then with rampant, albeit ill informed demand post-IPO, the shares will be highly over-priced. You'll see exactly what I mean in March when Facebook has to release their financial reports, IPO or not."

About Peter Leeds: The leading speaker on penny stocks and highly speculative investments, Leeds is also the author of "Invest in Penny Stocks," and editor or the world famous Peter Leeds penny stocks newsletter at http://pennystocks.com. He has spoken before the American Stock Exchange, written for Forbes, been featured by almost all top media, and led the panel at Manhattan's prestigious Arch Investment Conferences.

About the World Famous Penny Stocks Newsletter: The Peter Leeds team never take compensation from the penny stocks they analyze, and has no conflict of interest with the penny stocks they profile. Their penny stocks newsletter features fundamentally solid penny stock picks, which are expected to increase in value. With subscribers from six continents, and dozens of countries world wide, Peter Leeds penny stocks is the leading newsletter focused specifically on penny stocks.

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Tag Words: penny stock, penny stocks, penny stock trading, peter leeds

Categories: Investment

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