Facebook stock price follows my prediction: insiders rule

On August 20, 2012, three months after Facebook went public and launched its IPO, I posted a piece headlined: “Facebook, the CIA, DARPA, and the Tanking IPO.”

In it I presented a little background and made a prediction:

“But now the Facebook stock has tanked. On Friday, August 17 [2012], it weighed in at half its initial IPO price. For the first time since the IPO, venture-capital backers were legally permitted to sell off their shares, and some did, at a loss.

“Articles have begun appearing that question Zuckerberg’s ability to manage his company. ‘Experts’ are saying he should import a professional team to run the business side of things and step away.

“All this, despite the fact that Facebooks first posted revenue as a public company has exceeded analysts’ predictions, according to the LA Times.

“This has the earmarks of classic shakeout and squeeze play. It’s how heavy hitters gain control of a company. First, they drive down the price of the stock, then they trade it at low levels that discourage and demoralize the public and even semi-insiders. As the stock continues to tank, they quietly buy up as much of it as they can. Finally, when the price hits a designated rock bottom, they shoot it up all the way to new highs and win big.

“And they hold enough shares to exert more control over the company itself.”

Well, this is precisely how it’s working out.

Facebook launched its IPO and went public on May 18, 2012. The opening stock price was 42 dollars a share.

In September 2012, the collapsing stock hit a low of 17.55.

On October 17, 2013, a year later, after a long climb, the stock reached an all-time high: 52.21.

Right now, as I write this, it’s selling even higher at 54.06.

So…Facebook, a company with serious CIA-front connections, a company that encourages people to offer up surveillance data on themselves, goes through a transformation. Its IPO price collapses like ice in a heat wave. It keeps trading at its new low prices, scaring lots of investors.

They sell their shares. Insiders buy up those shares at delicious discounts.

Then, when the insiders have scooped up enough, they begin to move the price. Up. The long climb begins.

Then the pundits talk about what a good company Facebook really is. They justifying the rising stock price.

And the stock price eventually reaches new highs.

It’s easy as pie.

Of course, now many speculators are licking their lips and buying Facebook shares, hoping for new highs—just as they did when the IPO first launched. Those new highs may or may not happen. Insiders could take the price down again and shock the speculators, forcing them to sell, at which point the insiders will once again scoop up those shares, wait for a while—and then take the price up again.

This cycle repeats over and over in the stock market. It’s how the game is played. Insiders vs. the suckers.

Guess who wins.

And in the case of Facebook, the insiders are going to be people the CIA trusts. After all, Facebook is their baby.

Jon Rappoport