Demaree offers advice on Facebook IPO

By Rick Yencer

MUNCIE, IN - That much anticipated initial public offering of Facebook on Friday should be viewed with caution, according to financial advisor Gary Demaree who works out of the Raymond James office at Munseetown Square.

 "Small investors will have to wait this out," said Demaree, whose name is well known in the Muncie financial community whose brother, Jack has been a bank president and CEO.

 Demaree is conservative in his approach to buying, selling and trade investments, and urged a close eye on the Facebook offering before buying.

 Actually, only the big boys and girls in financial investment, like J.P. Chase or Merrill Lynch will get the biggest share of the stock while smaller investment firms like Raymond James will wait for their smaller shares.

 Demaree said  the local company will get its piece of that market and there has already been interest in the offering start to $28 to $35 a share. 

 There's the 30-something business owner that is interested in owning a piece of the biggest social network in the world and a retired rural teacher that just picked up on the investment from news reports.

 "It is really all over the board," said Demaree, about the investment interest.

 But Demaree again warned of the longterm risk, given someone is always looking for a new Facebook just like Mark Zuckerberg created that replaced the old My Space.

 Scott Smalstig, who works at Meridian Services, has interest in the offering, given its advertising value and mass appeal. A former ad man, Smalstig said the new adverting bar on Facebook sites had the ability to generate large revenue, making the investment lucrative. 

 Anyone in the investment business say Facebook could be the largest offering for an Internet company, estimated at raising $11.8 billion for the company and its early investors.

 Still some investors will stick to tangible stocks and bonds like Charles Rector, a retired insurance man who work with Lafayette Life. Rector was eating breakfast at McDonald's while reading about the Facebook IPO.

 "That's something I don't do," said Rector, who does not have a Facebook site.