Facebook, Inc. (NASDAQ:FB) The “one share, one vote” issue will be voted on at Facebook’s upcoming shareholder meeting on May 30
Facebook (FB shareholders want some of CEO and chairman Mark Zuckerberg’s power.
In a proxy filing on Friday, shareholders proposed that Facebook’s dual-class system be phased out and replaced with a “one share one vote” system.
Citing a parade of scandals last year followed by a months-long slide in the company’s stock, the proposal argued that disproportionate control in the hands of CEO and chairman Mark Zuckerberg isn’t in the best interests of shareholders. Facebook’s stock collapsed in July of last year, losing around 40% of its value between July and late December.
Shares of Facebook have since recovered most of the lost value, but are still trading about 18% lower than they were prior to the July drop, and were trading just shy of $179 per share as of Monday.
The proposal to phase out Facebook’s dual-class share structure is extremely unlikely to pass a vote, given the fact that CEO and chairman Mark Zuckerberg controls about 60% of voting shares. But it is one of several aimed at improving Facebook’s governance and chipping away at Zuckerberg’s iron grip over the firm, and includes one proposal to install a content governance system and another to replace Zuckerberg with an independent board chair.
The latter proposal was filed last year by hedge fund Trillium Asset Management with backing from a number of institutional shareholders, including large municipal and state pension funds. While not a filer in the “one share one vote” proposal, Trillium wrote in an email that “we support the One Share One Vote proposal because it is an important governance reform that Facebook should adopt.”
For its part, Facebook countered that the dual-class share system “insulates our board of directors and management from short-term pressures” — a common refrain among a growing number of companies, in particular tech firms, that have adopted the system on the idea that founders are in the best position to set the company’s long-term course.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 167.43.
The projected upper bound is: 186.78.
The projected lower bound is: 173.08.
The projected closing price is: 179.93.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 5 black candles for a net of 1 black candles. During the past 50 bars, there have been 26 white candles and 23 black candles for a net of 3 white candles.
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 80.0130. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 6 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 68.98. 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 sell 46 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 84. This is not a topping or bottoming area. The last signal was a sell 3 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 buy 9 period(s) ago.
Rex Takasugi – TD Profile
FACEBOOK INC A closed up 0.550 at 179.650. Volume was 49% below average (neutral) and Bollinger Bands were 1% wider than normal.
Open High Low Close Volume___
178.500 180.500 176.870 179.650 10,834,762
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 176.61 168.32 162.79
Volatility: 21 26 49
Volume: 14,896,387 16,379,103 24,064,694
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 10.4% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume into FB.O (mildly bullish). Our trend forecasting oscillators are currently bullish on FB.O and have had this outlook for the last 9 periods.