So???

[JB]

The only thing missing is the cigarette in the mouth.

[Hawkgirl]

Y'all can BITE ME.


You'll be sorry when I'm bathing in Moet Chandon.

[Hawkgirl]

That explains it! Micro-penis syndrome.

Ape, you can laugh at me about my stock terminology mistakes. You have enough (or not enough) on your plate.

[SarasotaRepub]

LOL!!!

I was a little surprised at the lack of a runup. I would not have been shocked to see FB close in the 80's.

[SaintLouieWoman]

I don't know if this guy knows what he's talking about. Watch, Facebook will probably go to 70. But it doesn't have a very good price to earnings ratio. But what do I know, I'm always too conservative.


http://www.newsmax.com/StreetTalk/hyman-facebook-stock-ipo/2012/05/18/id/439592?s=al&promo_code=EF40-1

Facebook is a sucker’s stock.

Why do I say that?

The media hyped it. And the only folks who seem to be itching to snatch it up are the inexperienced stock investors.

All my friends who aren’t stock investors are the ones who were looking to potentially buy it. All of my other friends who have a ton of years in the financial industry all shunned it. It’s simply overpriced.

Editor's Note: Join the 3.5% of Americans who are truly wealthy and financially secure.

There’s a reason why. Professionals in the industry know how this all works.

For starters, the pros who did want some shares of Facebook got it years ago (as early as 2009) through SharesPost or SecondMarket Holdings, which are ways that accredited investors can own positions of private-company stock.

So the ones who wanted it already had it…and at a much more favorable price than the IPO price.

Secondly, the underwriters of Facebook’s stock increased the number of shares available by about 25 percent, or about 100 million shares. Well, that just cut up the overall pie into much smaller pieces and that’s not good for the individual investor.

Thirdly, Goldman Sachs, Tiger Global Management and others decided to sell half of their positions as it debuted in public.

So the “smart money” is selling it at a time when the hype is so huge that the “dumb money” will want to take it off of their hands.

If Goldman thought it was such a great deal then they wouldn’t be cashing out of 50 percent of their holdings in Facebook. So the “big boys” are selling and only the inexperienced investor is trying to snatch it up. That should tell us all we need to know right there.

But there are other concerns that I have with Facebook as a stock. For instance, its revenue per monthly user is declining.

For instance, back in the fourth quarter of 2010, Facebook earned $1.20 of revenue per monthly user. In Q4 of 2011, that rose to $1.34. But in the first quarter of 2012, it’s down to $1.17. So the revenue is dropping off. That’s a concern of mine.

Also, it’s price-to-sales (P/S) is way to high. My buddy, Michael Carr, had this to say about that:

At the offering price, the P/S ratio on Facebook should be about 26.

Historically, the top 5 percent of P/S ratios has been about 12.2 and companies reaching this level of overvaluation have underperformed badly over the next five years. Almost all companies (more than 1,400 since 1986) with P/S ratios greater than 12.2 were small companies.

Since 1986, about two dozen companies with sales over $1 billion have reached the lofty level that Facebook will be at and almost all of them underperformed the market over the next one and five years. The half dozen that did not underperform matched the market and that was during a bear market so they still lost money.

Because of the lofty P/S ratio, FB cannot meet investor expectations unless sales top $1 trillion in 10 years. Fundamentally, the stock is doomed.

I couldn’t have said that better.


Read more on Newsmax.com: Sean Hyman: Facebook Is a Sucker’s Stock
Important: Do You Support Pres. Obama's Re-Election? Vote Here Now!

[Hawkgirl]

Mark Zuckerberg married Priscilla Chan today, a day after his company went public. Friends thought they were going to a graduation party, as Priscilla just graduated from medical school.

https://plus.google.com/107914798249...ts/NGqDe6X6Hi6

[Retread]

Waaaaaaayyyyyy too high a PE = one dot com finagle was enough for me. I will not buy a any PE higher than 15.

[Gina]

Mark Zuckerberg married Priscilla Chan today, a day after his company went public. Friends thought they were going to a graduation party, as Priscilla just graduated from medical school.

https://plus.google.com/107914798249...ts/NGqDe6X6Hi6

I wonder if they have a pre-nup?

[Lager]

I thought that was what you were referring to. You are talking about holding a "long" (long-term) position versus a short-term position in a given asset. Just so you know, "shorting" or "being short" on a stock is something entirely different. Maybe I am wrong and misunderstanding you, but this is how Wallstreet defined "Short" last I knew:

http://en.wikipedia.org/wiki/Short_%28finance%29

Actually, shorting FB stock might not have been that bad of an idea, when it opened to us "unconnected" investors in the 40 range.

[Starbuck]

Actually, shorting FB stock might not have been that bad of an idea, when it opened to us "unconnected" investors in the 40 range.

I think it's a short. But then I think the whole market is a short for now. I short S&P by buying SH.

40$ Range? Yeah. That's where GM (mod II)went to in '10 when they reissued. It was a short then; still looks like a short to me.