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Submission + - SEC calls for review of Facebook IPO (

beaverdownunder writes: After losing another 8.9% of it's IPO value in its third day of trading, SEC Chairman Mary Schapiro has called for a review of the circumstances surrounding Facebook's IPO on the NASDAQ late last week.

Unable to sell Facebook short, investors have instead taken to short-selling funds that owned pre-IPO shares as revelations come out that the underwriters involved revised their Facebook profit forecasts downward in the days before the offering without similarly revising the opening share price.

Meanwhile, Thomson Reuters Starmine has come out with a post-party Facebook estimate of a meagre 10.8 per cent annual growth rate, valuing the stock at a paltry $US9.59 a share, a 72 per cent discount on its IPO price, signalling that the battered stock may not have found the bottom yet.

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SEC calls for review of Facebook IPO

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