Watch the swing off the pivot after open and you should be good.....As long it opens low. It looks good now so GL.
Two different companies.......Both are trying to make money and I would say Facebook is respectful of its users. Alas FB is trying to make money. FB has a long way to go to overtake GOOG.
154 million shares after hours where there is no liquidity. I don't know where you got that information. Did you know the only rule that governs their buying is what they publish in their prospectus. They are trying to duplicate and blend the companies in the S&P 500 into their funds. The only rules they have is to abide by the rules they advertise. State Street says they may buy in advanced based on the anticipation of a comapny being added or removed from their S & P.
Their ad revenue trippled? Not from last quarter so from when? Please read the prospectus from State Street (has multiple funds in the S&P 500including one of the largest)which states that they may ad shares at anytime based on anticipation of a company being added or taken off the S&P 500. The Motley Fool Video just states that many funds have to over pay.
Mcgraw Hill does not write the rules for these index companies. There are no rules. The just sell products that track this index. Many would be surprised that many of the funds have large amounts of derivtives in their protfolios. Go to the prospectus of all these funds. It won't pop 10% on Friday do to funds adding shares. Maybe there will be some other reason for a rise or maybe there won't be but the S and P is basically done.
For FB to go down to a PE of 45, they would need to report around 80 cents which is ludicrous! You have to remember the PE is trailing. Forward PE'S are a year ahead and are based on non-GAAP multiples so if forward performance is met then PE is likely to be in the 60's. The analysts expect about 10% q4 over q3 not 2x.
FB is not a value stock so its pps is not predicated on other stock's values. FB is a growth stock so its values are based on its growth story. Try comparing it to AAPL and GOOG.......Then it is way over valued.
FB will go up or down based on how much how much the market believes it will grow. It will not go up based on AMZN'S PE.
Your belief is based on your bias. You have to understand that the rules are in the favor of the big money. The rules are not there to force the hand of the money managers to take a loss. Their hands are not tied and subjected to one day of trading. The SPY is about 16 million shares according to the weighting and they will have a little less than 2 weeks to fill the shares.
If you believe that there will be another big pop, you haven't watched too many stocks going into the S&P. I have watched many and most have the pop and then the stock levels off. Sometimes there is some momentum but that is mainly due to many jumping on the band wagon. I am not saying anything bad about FB.
I do want to tell you that the S&P addition does not cause a double pop and a 25% rise and it is not a valid trading mechanic to look at multiple gaps. I would play the trend but not correcting everyone and telling them that they are wrong.
That's what I was saying. Thanks. Many people think all the shares are added on the 20th and that is not true. There is one note and that is there will be some who already have the shares prior to the announcement.
Bunny, that is not true. They can buy anytime. They are not restricted and forced to all buy on the 20th. Also they can slowly add after the 20th.
An upward break is not bullish because a failure could spell capitulation. I would look for a big break off the low trigger. With that said, it is coiling and it could break but volume will wind down in the next couple weeks so it will probably float for a bit and at January is good place for a move. There is a lot between now and then so we will just wait and see. It could move next week but today is key to see how it will move. GL
Its a rule for funds that track the S&P. Many of the funds have already bought. It will amount to about 190M shares.