Facebook, Inc. (NASDAQ:FB) Directors Sued
A pension fund sued Facebook Inc. directors for being too accommodating when co-founder Mark Zuckerberg sought to create non-voting shares so he could retain control after selling most of his stake to fund his family’s philanthropic endeavors.
While Zuckerberg scrapped his plans last year for creating a new class of shares with no voting power, directors should be held accountable for the chummy way in which they considered his proposal, the United Food and Commercial Workers Union’s pension fund said in the complaint.
The board committee tasked with evaluating Zuckerberg’s idea used a “corrupted process’’ that guaranteed “approval of a stock reclassification plan lacking in any legitimate business purpose and which was manifestly unfair’’ to Facebook investors, according to the suit filed Wednesday in Delaware Chancery Court.
Facebook declined to comment on the suit. Shares fell 2.4 percent, to $162, in Nasdaq trading.
The complaint details what’s described as unusual communications between venture capitalist and Facebook board member Marc Andreessen and Zuckerberg. Facebook set up a special board committee to represent shareholders while weighing the share-class proposal. Andreessen is named as a defendant in the case along with fellow Facebook directors Peter Thiel, Reed Hastings, Erskine Bowles, Susan Desmond-Hellmann and Jan Koum.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 179.17.
The projected upper bound is: 180.58.
The projected lower bound is: 142.01.
The projected closing price is: 161.29.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.
Review of FACEBOOK INC A (FB.O)
as of 9/12/2018
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 37.6339. This is not an overbought or oversold reading. The last signal was a buy 1 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 31.21. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 2 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -98. This is not a topping or bottoming area. The last signal was a buy 1 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 4 period(s) ago.
Rex Takasugi – TD Profile
FACEBOOK INC A closed down -3.940 at 162.000. Volume was 4% above average (neutral) and Bollinger Bands were 22% narrower than normal.
Open High Low Close Volume___
163.250 164.490 161.800 162.000 24,078,118
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 168.53 184.81 181.11
Volatility: 29 63 45
Volume: 25,254,398 27,588,050 26,762,378
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
FACEBOOK INC A is currently 10.6% below its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of FB.O (mildly bearish). Our trend forecasting oscillators are currently bearish on FB.O and have had this outlook for the last 32 periods. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.
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