New Scaratings

This stock might be a good speculation, when the P/E ratio is under 30. (I said "speculation", not "investment".) There are only two ways Facebook can get to a P/E ratio under 30. Either the earnings have to go up, or the price has to go down. At this time, I feel that jumping into it at higher P/E ratios is gambling, and trying to guess what other fools will do.

p.s. Actually, thirty times earnings might be too high, but it looks like it is a company that has good prospects for earnings growth over the years to come, and I think at some some point buying may come into it from speculators.

p.p.s. Think I need to throw in a disclaimer for this post. This is not a recommendation to buy, not buy, or sell Facebook at whatever it's P/E multiple might be. (This would apply to put and call options on it as well.) These are but thoughts from an old guy, who wanted to share them with you, and this old guy has been very wrong many times over the years. Before anyone decides to act on this post, you MUST consult your financial adviser.

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"The game is afoot."

I keep trying to call to consult myself, but I get my voicemail when I dial my number!!!

Congrats Facebook. At the end of yesterday trading they lost $24,000,000,000.
All IPO last year raised $26 Billion.
So Facebook only has $2 billion more to lose to look completely stupid.
Even NTN cannot do this big of a blunder.

What about a repeat offering...only for the west coast.

DANTE, here's a possible solution. Go stand by your land-line telephone, and call it from your cellphone. Hold one up to you right ear and the other up to your left ear, and then you will be able to give yourself financial advice without being shunted over to voicemail.

...........................................

................................................................... "Hi Dante, I'm so glad I finally got through to myself."












picked up a large position in the stock through another firm, and thinking of transferring your account.

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"The game is afoot."

I hate to post things on this that are not originally mine, but I will share with you what Henry Blodget has to say about Facebook.

"Worse, this stock seems capable of going lower. Henry Blodget, a former Wall Street analyst turned tech blogger, estimates that a fair price for Facebook stock is somewhere between $16 and $24 per share.

But even that could be overly optimistic. The scary thing is, if Facebook shares carried the same price-earnings ratio that Apple and Google carry, the stock would trade in the single digits.

Supposedly Facebook is worth more because it’s a “growth stock.” But guess what? Apple is growing faster than Facebook, despite being 30 times its size."

http://www.thedailybeast.com/articles/2 ... anies.html

(I don't need a disclaimer here, because they are not my words.)

However, I will say this, you will see bounces in stocks like this as they decline. Trying to time and trade on those bounces is extremely difficult. I would just watch, and let others try to figure out what day and price is the time to buy, and when they need to sell. Unless you know more than everyone else, and think you can day trade this stock, I would recommend that you don't jump in, unless you can afford to lose money for wrong guesses. If losing money is no problem for you, have at it, if that's your game, and I wish you luck.

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"The game is afoot."

Cloudy's new thread on the stock market (which could prove to be interesting) reminded me of this thread on Facebook stock. FB closed today at 49+ which caused me to guffaw at a lot of the posts upthread.

When many stocks don't trade on fundamentals it makes picking winners difficult.

FB currently at 59 in after hours trading.