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Investors who hate Goldman-Sachs (NYSE: GS) have one more reason to
despise the former investment banking giant.
The firm recently laid a $500 million bet on Facebook – the pre-IPO
social networking website with over 500 million users worldwide. And
they’ve valued it at $50 billion, meaning they have a one percent
stake.
So why hate Goldman because of this deal?
Part of the untold story is that in exchange for the $500 million in
up-front cash, Goldman obtained the ability for their clients to buy up
to $1.5 billion in equity.
It’s these kinds of back-door, pre-IPO deals that completely let big
“banksters” and institutional traders jump in line in front of even the
savviest individual investors.
In effect, it’s likely already too late to profit from the inevitable
Facebook IPO…
But Chief Investment Strategist Ian Wyatt of Wyatt Investment Research
recently put together a proprietary research report on three technology
investments that aren’t under the thumb of Goldman-Sachs.