A recent blog post this week reports that Mark Cuban has revealed that he bought just under five million in Facebook stock. He must have been one of the investors that did not get the message that Facebook’s business was declining or he simply has money to burn.
The Dallas Mavericks owner admittedly purchased three blocks of 50,000 shares at $33, $31.97, and $32.50. Cuban tells that it’s a trade, not an investment. He likens it to buying a Mickey Mantle, a Hank Aaron, and a Barry Bonds rookie card, knowing there is a card show in town next week.
Cuban’s reason for the trade was interesting, especially since he never has had anything good to say about Facebook. He was recently quoted as saying that the disastrous IPO will be noted as just another good reason for the retail investor to stop playing the stock market. He goes on to reveal that in his opinion, any positive impression investors had of the IPO market and the stock market in general was just thrown out the window. Read the rest of this entry »