Getting FaceFucked

[aroundaustin]

Who admits to buying shares of FB? It's now trading below $30.

[ss4699]

Really - what happened?

[nuglet]

Originally Posted by newtotown

Really - what happened?

again, still, keep up with current events.

[nuglet]

Originally Posted by aroundaustin

Who admits to buying shares of FB? It's now trading below $30.

LOL I admit, briefly wishing I had a large chuck to buy in.. Luckily I left the stash where it was.. now I'm appreciative that I did.

[Billy_Saul]

Originally Posted by aroundaustin

Who admits to buying shares of FB? It's now trading below $30.

Never considered it. Even today after closing up $1.41 @ 29.60 it has a trailing PE of 94.7. Far overvalued. Put your money in Apple which has a trailing PE of 14 and is properly valued, if not undervalued. I wouldn't be surprised to see FB bottom out below 25 or so.

[aroundaustin]

Yes, I'm thinking it's headed below $20. It can't be shorted yet but options are trading. I may buy some June puts on it with a $25 strike.

[ss4699]

Originally Posted by nuglet

again, still, keep up with current events.

I lost interest in the market when it to my 2nd retirement to nil in '08. But they were hyping FB so much. Where did it start? Did not hear that either. What was the first offer?

[nuglet]

it was $38 - $42 the opening day.

[Billy_Saul]

http://www.cnbc.com/id/47674474

"In five to eight years they are going to disappear in the way that Yahoo has disappeared," Jackson said. "Yahoo is still making money, it's still profitable, still has 13,000 employees working for it, but it's 10 percent of the value that it was at the height of 2000. For all intents and purposes, it's disappeared."

[Squarenot]

Originally Posted by Billy_Saul

Never considered it. Even today after closing up $1.41 @ 29.60 it has a trailing PE of 94.7. Far overvalued. Put your money in Apple which has a trailing PE of 14 and is properly valued, if not undervalued. I wouldn't be surprised to see FB bottom out below 25 or so.

Smart man. I agree totally. I bought Apple when it traded in the 80's and fully expect it to go to 1,000 within 2-3 years.

I like speculative stocks and do trade on a very selective basis, but FB never came up on my radar.

[budman33]

Facebook sells nothing. While people are addicted to it, it really offered nothing. Zuckerberg is a billionaire so grats him but I wouldnt put a dime into it.

[BigChestedItalian]

Haha. At first I considered this, now not so much due to the fact of possibility of a new social network coming out.

[AtypicalLonghorn]

There are over 1.5 BILLION Facebook shares that are locked up until late November. A little over 1 billion can be sold in November and the rest in 2013. Second Market purchasers that bought in 2009 and some in 2010 are still WAY in the money even if FB sinks to $25.

Most of those shareholders are not big instititutions. Those people have been waiting three years or more to cash out. If they made the mistake of not cashing out in the May IPO, they will be eager to do so in November if they are pre-2009 purchasers. Second Market buyers never had the chance to cash out in the IPO. People who bought there in 2011 are more or less screwed for the foreseeable future. Someone who buys today will be facing a tsunami of shares available to be sold over the next year.

Nothing is certain, fortune favors the brave, no risk no reward, and whatever other appropriate cliche exists may be inserted here, but "smart" money doesn't buy when that much selling pressure is ready to hit in six months. One might think a $38 IPO selling for $30 with a recent low of $25 seems like a good deal, but not when 1 billion shares with very low basis are ready to be unloaded in November.

[kingorpawn]

Facebook is a scam. It's nothing more than a blog except that instead of the builders of the blog, blogging, they instead have people sign up and let them do the blogging. Then the content placed by the users is used for advertising which in the end makes Facebook nothing more than a medium for advertising. Which doesn't work well for the advertisers.

Zuckerberg went public because he knows the advertisers are not getting their money's worth since 50% of facebook users are using it only on mobile devices where there's really no advertising. So now Facebook has a dilemma because all the advertising is on the website and only 50% of facebook users use the website which makes matters worse since very few users actually pay attention to the ads.

Zuckerberg went public to cash out. He even said it in his letter to investors that he's going public for his investors and employees. He knows over time very few people will use facebook from the website. That's why he's buying this mobile companies trying to get it going on mobile. It's a last ditch effort to save the company.

Rumor has it he's trying to build his own phone. He's even trying to create a search engine, not for the web, for all that content users post and try to monetize it. A search engine to search his own data.