Stocks to Buy based on the Best Stock Market Research
As most of you know, Facebook (FB) stock will IPO on May 18, 2012 and open for trading sometime in the morning. Do we buy the Facebook (FB) IPO when it opens for trading or sell the hype? Here are some common answers to a few questions I received recently. Live chat - http://www.stockstobuy.org/profiles/blogs/facebook-fb-stock-ipo-for...
How do I buy the Facebook (FB) IPO?
Facebook (FB) stock will begin trading on Friday, May 18, 2012. Most retail investors ( small mom and pop investors aka, the average Joe or Sally ) will not be able to call their broker up and buy FB stock at the set price point on May 17, 2012. I would bet that 85-90% of Facebook (FB) shares will be allocated to institutional investors or the " big players " on Wall St. who have big accounts with Morgan Stanley, Goldman Sachs, ect. The only way for small investors to buy the Facebook (FB) IPO will be to buy the stock when it opens up at a huge premium to the set pricing.
Okay, what is the current Facebook (FB) IPO Price Point?
Facebook (FB) stock is indicated to price between $28-$35 after the close on 5/17/12. However, I could see this range moving up 10% and Facebook pricing at $38-$40 which would be the high end of the range. The demand for this stock will be like nothing we've ever seen before. Everyone seems to want a piece of the action....me on the other hand, I will pass on the deal. (*** Update - Facebook (FB) stock prices at $38 *** )
What time will Facebook (FB) Stock IPO Open for Trading on Friday?
Since Facebook is listing their initial public offering on the NASDAQ, there will be a considerable delay. I would guess that the Facebook (FB) IPO will begin trading between 11am - 11:45am EST. Google (GOOG) was the same back when it IPO'd in the mid 2000's.
How would you compare the Google (GOOG) IPO to the Facebook (FB) IPO?
When Google (GOOG) came public, it was a much smaller company. There was still a massive amount of growth ahead of it. Facebook (FB) on the other hand is coming public as a large developed company with not as much growth because the company already had the huge growth spurt. Mobile is going to be a huge roadblock for Facebook....how will they monetize that? Do you click on mobile ads? I don't!
Should I buy stock in the Facebook (FB) IPO?
No, If you are thinking about buying the Facebook (FB) IPO as an investment, I would wait at least 6 months for the lockup expiration to come. When the Facebook (FB) lockup period ends, insiders have a chance to sell their stock. This event usually creates a buying opportunity as major investors sell ahead of the lockup. LinkedIn (LNKD) provided a buying opportunity and countless other stock as well.
If you plan to trade the Facebook (FB) IPO, just set tight stops and have fun. You can trade any stock as long as you have an exit point before you go into the trade.
While I may try to buy Facebook (FB) stock for a quick trade, I think you would be crazy to buy and hold Facebook stock given the valuation. FB will be expensive and there are so many unknowns about their growth potential. Why not buy Apple (AAPL), the best company in the world, for 11 times earnings and has $110 Billion in the bank. The company also pays a dividend.
Replies to This Discussion
Its funny, I had that 50.00 figure in my mind
since i didnt get in on the IPO , im spread betting on it
options aren't available until the end of the month I thought?
good luck 2 all
I've created a thread in the blogs, probably easier to view - http://www.stockstobuy.org/profiles/blogs/facebook-fb-stock-ipo-for...
Yea, this is a bad day to put out news about your company, nobody cares lol