Sehyrysh, Zuckerberg is definitely laughing all the way to the bank, and I agree that stock is overvalued. This mroning, right after trading starts, stock hit 40, and then within 20 mins fell down to 38 again (guess some immature buyer decided that its time to sell and 2 dollars/sahre profit in half hour is enough :D).It rose back to 40 and now sitting there for few hours.
I think now FB has to immediately bring the value of the company to match the stock price or this bubble is going to burst soon. But I have a feeling that FB would be able to do that. FB is an advertising paradise and lots of marketers would be paying a huge amount to FB to have banner space on FB pages.
FB getting crushed today. Was down over 12% at one point. Still negative now. Does not look good, but maybe there will be some interest in keeping a floor on it.
Damn I so much wanted to buy that, but I am so dense when it comes to stock market that I dont even know where to go to buy stocks.
can someone please put a tutorial here for people like me, who have no idea where to start from.
FB is publicly traded now, are you saying you don't know how to purchase publicly traded stocks from NYSE/Nasdaq?
This mroning, right after trading starts, stock hit 40, and then within 20 mins fell down to 38 again (guess some immature buyer decided that its time to sell and 2 dollars/sahre profit in half hour is enough :D).It rose back to 40 and now sitting there for few hours.
TLK the stock on friday opened at 40. So if the buyer was a retail buyer he probably got in at 40. So instead of making money he lost 2 dollars per share if he was one of the retail schmucks who sold.
The share is in for a rocky ride specially as the lead underwriter Morgan Stanley has been sent a subpoena due to reports that analysts cut their revenue growth outlook on facebook during the IPO phase and apparently these figures were passed onto only some investors. if true it could be a messy affair and therefore it would be prudent to stay away from the share.
If you want to deal in this share probably a long put would be appropriate at this time or a covered call for those who are holding the share and sitting on a loss.
If you want to deal in this share probably a long put would be appropriate at this time or a covered call for those who are holding the share and sitting on a loss.
Long put was bouncer #1
Covered call was bouncer #2 in same over - hence a no ball!
Anyway re: long put and covered call recommendations it would help if
1) if we know what these terms mean?
2) why these strategies are appropriate
3) for what duration these strategies be used.
4) at what price level should above strategy be abandoned
Using the keep it simple approach some had called it overvalued even 2 weeks before when ipo was priced around 28 to 32.
Read in wsj that analysts cannot issue any reports. For 40 days after ipo. However the underwriters can share information with their big clients. So no laws appear to have been broken. Whether the laws are fair is another question.
I told you it was overvalued at $38.