Underwriter cut Facebook estimates before IPO

In the run-up to Facebook's $16 billion IPO, Morgan Stanley, the lead underwriter on the deal, unexpectedly delivered some negative news to major clients: The bank's consumer Internet analyst, Scott Devitt, was reducing his revenue forecasts for the company.

The sudden caution very close to the huge initial public offering, and while an investor roadshow was underway, was a big shock to some, said two investors who were advised of the revised forecast.

They say it may have contributed to the weak performance of Facebook shares, which sank on Monday - their second day of trading - to end 10 percent below the IPO price. The $38 per share IPO price valued Facebook at $104 billion.

The change in Morgan Stanley's estimates came on the heels of Facebook's filing of an amended prospectus with the U.S. Securities and Exchange Commission (SEC), in which the company expressed caution about revenue growth due to a rapid shift by users to mobile devices. Mobile advertising to date is less lucrative than advertising on a desktop.

"This was done during the roadshow - I've never seen that before in 10 years," said a source at a mutual fund firm who was among those called by Morgan Stanley.

JPMorgan Chase and Goldman Sachs, which were also major underwriters on the IPO but had lesser roles than Morgan Stanley, also revised their estimates in response to Facebook's May 9 SEC filing, according to sources familiar with the situation.

Morgan Stanley declined to comment and Devitt did not return a phone message seeking comment. JPMorgan and Goldman both declined to comment.

Typically, the underwriter of an IPO wants to paint as positive a picture as possible for prospective investors. Investment bank analysts, on the other hand, are required to operate independently of the bankers and salesmen who are marketing stocks - that was stipulated in a settlement by major banks with regulators following a scandal over tainted stock research during the dotcom boom.

The people familiar with the revised Morgan Stanley projections said Devitt cut his revenue estimate for the current second quarter significantly, and also cut his full-year 2012 revenue forecast. Devitt's precise estimates could not be immediately verified.

"That deceleration freaked a lot of people out," said one of the investors.

Scott Sweet, senior managing partner at the research firm IPO Boutique, said he was also aware of the reduced estimates.

"They definitely lowered their numbers and there was some concern about that," he said. "My biggest hedge fund client told me they lowered their numbers right around mid-roadshow."

That client, he said, still bought the issue but "flipped his IPO allocation and went short on the first day."

"VERY UNUSUAL"

Sweet said analysts at firms that are not underwriting IPOs often change forecasts at such times. However, he said it is unusual for analysts at lead underwriters to make such changes so close to the IPO.

"That would be very, very unusual for a book runner to do that," he said.

The lower revenue projection came shortly before the IPO was priced at $38 a share, the high end of an already upwardly revised projected range of $34-$38, and before Facebook increased the number of shares being sold by 25 percent.

The much-anticipated IPO has performed far below expectations, with the shares barely staying above the $38 offer price on their Friday debut and then plunging on Monday.

Companies do not make their own financial forecasts prior to an IPO, and underwriters are generally barred from issuing recommendations on the stock until 40 days after it begins trading. Analysts often rely on guidance from the company in building their forecasts, but companies doing IPOs are not permitted to give out material information that is not available to all investors.

Institutions and major clients generally enjoy quick access to investment bank research, while retail clients in many cases only get it later. It is unclear whether Morgan Stanley only told its top clients about the revised view or spread the word more broadly. The firm declined to comment when asked who was told about the research.

"It's very rare to cut forecasts in the middle of the IPO process," said an official with a hedge fund firm who received a call from Morgan Stanley about the revision.

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Roth explains Van Halen's postponed tour dates

By Rolling Stone

Jason Decrow / AP file

David Lee Roth, left, and Eddie Van Halen performing at Madison Square Garden in March.

David Lee Roth posted a video this weekend explaining the mysteriously postponed dates on Van Halen's tour.

As Rolling Stone?reported Thursday, the band abruptly postponed all the tour dates after their July 26th show in New Orleans, pulling more than 30 dates from their schedule last week,?including shows in Milwaukee, Detroit, Cleveland, Salt Lake City and El Paso. They offered no explanation for the postponement at the time.

Van Halen postpone summer tour dates

Though a source with knowledge of the tour attributed the cancellations to fighting within the band, Roth insists otherwise in the video. "The band is getting along famously," he says, "better than we have in quite some time."

The true cause for the disruption, he explains, is simply exhaustion.

Van Halen announce 2012 tour with David Lee Roth

"As usual, we bit off way more than we could chew when it came to scheduling. The band is winning, but our schedule has been sidelined for unnecessary roughness," he says.?"We're gonna take a break and we're gonna come all the way back around, because this tour is gonna take about two years."

Are you looking forward to seeing Van Halen on tour? Discuss on our Facebook page.

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Acne Will cause, Cures, and Theories | How Do you Get Acne ...

May 20, 2012

Acne is rather obstinate, embarrassing, and troubling. It happens to be correct, there are actually a myriad of services that inform you they?re going to get treatment within your pimples. What they do not inform you is the fact that the reduction you obtain will only be short term plus the pimples will probably return. Pimples will not be agonizing, or even a serious health and fitness dilemma, but it is however not a problem you may get rid of speedily. Should you have got a serious circumstance of pimples, it is best to find healthcare consideration. Milder outbreaks regularly crystal clear up not having healthcare intervention. This will be speeded up through specified actions, a number of which we will go over within this post.

Before you look at right until the end of the web page, I just choose to inform you about my other content articles. Probably you additionally look for the data about What are the Best Positions to Get Pregnant. You can actually go to that by clicking Lisa Olson Pregnancy Miracle Book. However, once you do not have to have that, you possibly can continue on reading the knowledge bellow.

Don?t abrade the pimples area as you are treating it and your results can be much quicker and better. Always keeping your hands away from your pimples sounds like typical sense, but a lot of pimples sufferers just can?t preserve their resist picking at their pimples.

This is often actually amongst the worst things it is easy to do, as it?ll only bring about even more scarring that can be visible for your longer period of time than for those who just left it alone. Each and every morning and evening it is really important to cleanse your experience with a gentle/natural soap by using a soft cloth. Be gentle with the skin so you do not aggravate the pimples. While you apply anything in your experience, do so gently, as anything you do to irritate the skin will only make your pimples stay around longer. Research has shown there may be a connection involving the food we eat and pimples; having said that, exactly what that connection is hasn?t been discovered. All we know is you will discover foods that make pimples worse. A number of people are far more sensitive to dairy products and services than other folks and have found that dairy products and services triggers their pimples. You could possibly want to experiment with a dairy free eating habits for your very few weeks and see if your pimples starts to very clear up. 1 big culprit in a lot of well being issues is eating foods superior on the Glycemic Index ? foods superior in carbohydrates that have highly little nutritive benefits. These are mostly what are known as unhealthy carbohydrates, such as foods made from white flour. So in the event you eat lots of bread and pasta, look for varieties made from whole grains rather than processed flours. Maybe eating more healthy foods won?t completely very clear up your pimples, but it surely will certainly be better for the body and well being.

If you may have zits, you might want to try out laser or light-based therapies; they do not function for everybody however they might function for you personally. Most skin doctor are aware of laser zits treatment methods so inquire about them the next time you make an office head over to. Most individuals that received this laser therapy will receive healthcare cure likewise. The bacteria in your confront that will cause zits to target of all light and laser therapy. Laser treatment methods will not treatment zits, but it really will enable with outbreaks when they occur from time to time. You certainly will most definitely ought to have your insurance pay for these treatment methods as they are highly costly and not affordable for most.

You will discover lots of professional medical procedures and home solutions you could use to deal with your zits. Extra than most likely, you?ll want to start with an cost-effective solution and then function toward a extra expensive remedy in circumstance it does not function. Although various cures are available, none of them will actually treatment zits forever. In fact, all we can do is try out the various cures until we discover 1 that keeps our zits beneath command.

Posted by publisherHDYGA | Filed Under 2012?

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Video: Cramer: Romney known as job destroyer

A Second Take on Meeting the Press: From an up-close look at Rachel Maddow's sneakers to an in-depth look at Jon Krakauer's latest book ? it's all fair game in our "Meet the Press: Take Two" web extra. Log on Sundays to see David Gregory's post-show conversations with leading newsmakers, authors and roundtable guests. Videos are available on-demand by 12 p.m. ET on Sundays.

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Doug Frantz Becomes Washington Post National Security Editor

NEW YORK -- Doug Frantz, a veteran investigative journalist who has done stints at The New York Times, the Los Angeles Times and the Chicago Tribune, joined the Washington Post Monday as national security editor.

With the Post job, Frantz returns to journalism, the field he worked in for 36 years before becoming an investigator for the Senate Foreign Relations Committee in early 2009. At the time, Frantz told this reporter he'd "always think of [himself] as a reporter, with a notepad tucked in his back pocket and a lot of unanswered questions."

Apparently, that feeling didn't change. On Monday, Frantz told The Huffington Post that he continued to feel like a journalist during his time working for the committee, chaired by Sen. John Kerry (D-Mass.), in which he wrote or oversaw public reports on topics like Iran's nuclear program and the U.S. government's civilian assistance program in Afghanistan. Frantz said the latter report was "highly critical of the administration" and "resulted in some changes on the ground in Afghanistan."

"That?s the reason I was a journalist, to make a difference," Frantz said. "There was a big degree of satisfaction to be able to do that for the Senate."

"I don?t think of it as the other side," Frantz said of his work in government. "I thought of it as two-and-a-half years of public service. I was happy and honored to work for the Foreign Relations Committee. It wasn't political. It was honorable work. I was glad to do that, but I'm absolutely passionate about this."

In addition, Frantz said the experience offered a "clearer understanding of how government works," which should be useful in his new role overseeing national security coverage. He's not the only one on staff with such experience; veteran Post national security reporter Walter Pincus took a sabbatical in the early 1960's to report for the Senate Foreign Relations Committee.

Frantz, who most recently spent nine months as managing editor of the Washington office of consulting firm Kroll, said that at 62 years old, he "never thought" he'd get back into journalism, but is excited to make his return to a "quality paper" like the Post.

The Post's internal memo announcing Frantz' hire is below:

We are pleased to announce that Doug Frantz, a highly distinguished investigative journalist, will join The Post as national security editor.

Doug comes to us with an impressive body of work and considerable experience producing and overseeing ambitious journalism. He is a former managing editor and investigative reporter for the Los Angeles Times. He also was an investigative reporter, foreign correspondent, and investigations editor at the New York Times. In addition, he spent eight years as an investigative reporter for the Chicago Tribune.

He was part of the NYT reporting team that won the 2002 Pulitzer Prize for Public Service for coverage of developments following the 9/11 terrorist attacks. He also is a two-time Pulitzer finalist?once for a series on U.S. assistance to Iraq during the Iran-Iraq war and again for articles on the Church of Scientology. He has won numerous awards for investigative reporting and is the author or co-author of 10 books, including two on nuclear proliferation and three New York Times Notable Books of the Year.

Most recently, Doug was managing director in the Washington office of the consulting firm Kroll, heading up its business intelligence and investigations practice. Prior to that, he served as deputy staff director and chief investigator of the Senate Foreign Relations Committee, where he executed complex investigations ranging from corruption and drug trafficking in Afghanistan and Pakistan to U.S.-Mexico gun running.

We believe that Doug?s range of experiences, his competitive hunger and desire to generate the most high-impact journalism, will help elevate the work of an already superb and enterprising national security team. He will take the reins from Craig Timberg, who deserves a round of applause for his smart, steady stewardship as acting national security editor. Craig will soon segue into another role that we will announce shortly.

Please congratulate Doug when he arrives on June 11.

Kevin Cameron

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Fitness may reduce hypertension risk | Health and Fitness

COLUMBIA, S.C., May 20 (UPI) ? People who have a parent with high blood pressure can reduce their risk of hypertension with moderate exercise, U.S. researchers say.

Lead author Robin P. Shook, a doctoral candidate in the Arnold School of Public Health at the University of South Carolina in Columbia, said the study tracked a group of 6,278 predominantly Caucasian adults ages 20-80 for an average 4.7 years. Thirty-three percent of participants reported a parent had hypertension.

When the study began, all participants were healthy, did not have hypertension and achieved an exercise test score of at least 85 percent of their age-predicted maximal heart rate. During the study, 1,545 participants developed hypertension.

The study, published in the journal Hypertension, found high levels of fitness were associated with a 42 percent lower risk of developing hypertension, and moderate levels of fitness with a 26 percent lower risk.

People with both a low level of fitness and a parent with hypertension had a 70 percent higher risk for developing hypertension, compared with highly fit people with no parental history, Shook said.

?The results of this study send a very practical message, which is that even a very realistic, moderate amount of exercise ? which we define as brisk walking for 150 minutes per week ? can provide a huge health benefit, particularly to people predisposed to hypertension because of their family history,? Shook said in a statement.

Article source: http://www.upi.com/Health_News/2012/05/20/Fitness-may-reduce-hypertension-risk/UPI-34851337492214/

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Bee Gees' Robin Gibb Dead At 62

Singer had battled colon and liver cancer and lapsed into a coma last month.
By Katie Byrne

Robin Gibb in 1976
Photo: Richard E. Aaron/ Redferns/ Getty Images

Bee Gees member Robin Gibb died Sunday (May 20) after a long battle with cancer; he was 62 years old.

"The family of Robin Gibb, of the Bee Gees, announce with great sadness that Robin passed away today following his long battle with cancer and intestinal surgery," read a statement confirming the news. "The family have asked that their privacy is respected at this very difficult time."

See photos of Robin Gibb throughout his career.

Gibb, who had been battling colon and liver cancer, lapsed into a weeklong coma last month. In February, doctors said he'd made a "spectacular" recovery from the disease, but he was soon back in the hospital for surgery. The "Saturday Night Fever" singer had bowel surgery almost two years ago for an unrelated condition, at which time doctors discovered a tumor and diagnosed him with colon cancer. It appeared as if the cancer was in remission as recently as March.

Robin was one-third of the Brothers Gibb, alongside lead singer Barry and twin brother Maurice, who died in 2003 from complications of abdominal surgery. The siblings created the Bee Gees as teens in Brisbane, Australia, in 1958. They made their initial impact on pop during the Beatles-led British invasion of the mid-'60s, sending "New York Mining Disaster 1941" into the top 20 and beginning a string of hits that would last through 1972's "Run to Me." The '71 smash "How Can You Mend a Broken Heart" reached the top of the charts.

The Bee Gees' style shifted during the disco era, and their success with funky, dance-oriented pieces such as "Jive Talkin'" and "You Should Be Dancing" set them up for the pop juggernaut of "Saturday Night Fever."

With falsetto vocals and irresistible rhythms, the trio became one of disco's most resonant symbols. Three Bee Gees songs from the film's soundtrack, "How Deep Is Your Love," "Stayin' Alive" and "Night Fever," reached #1 on the Billboard chart. The "Saturday Night Fever" album is pop's best-selling soundtrack, having moved over 40 million copies.

Please share your condolences for Gibb's family, friends and fans in the comments.

Related Photos

• The Bee Gees' Robin Gibb: A Career In Photos

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• The Bee Gees

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