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Facebook, Inc. (FB) Message Board

benzilla999 93 posts  |  Last Activity: 5 hours ago Member since: Mar 29, 2006
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  • benzilla999 benzilla999 5 hours ago Flag

    You could exercise your call. There is a little bit of time premium (about $.60) in your option but its not much. If you sold your option and bought the stock, you would be a little bit ahead.

    Not much is going to happen between now an expiry due to the splilt/dividend. The split/dividend wont happen for at least a month or two after June 20th and it could even be a longer time. The date has not been set yet. GOOGL stock split really didn't do too much for the stock before or after the split so FB probably will be the same. Now FB may go up for reasons other than the split. Just so you know, the split dividend will provide you with 3 times as many shares but the price after the split will be 1/3 of the pre-split price. Its a wash.

    With that said, I don't think there is any advantage to exercising your options as opposed to selling your options.

  • Reply to

    Stock split.

    by hoanchi69617 Apr 29, 2016 8:58 PM
    benzilla999 benzilla999 Apr 30, 2016 12:14 AM Flag

    i don't dislike you and I appreciate your posts. That comment of mine was not good because I have no idea of what you think.

    Sorry

  • Reply to

    Stock split.

    by hoanchi69617 Apr 29, 2016 8:58 PM
    benzilla999 benzilla999 Apr 29, 2016 11:57 PM Flag

    Bareft, I know you don't want me to respond but you say things that I can't leave alone.

    The market could not work if the stock was traded at twice the value from one instance to the other. This would happen if the stock had a value of 2/3. This is infinity because in a matter of one trade someone could double their money. People would keep bidding the market up. The market could not be made. Mathematical logic prevails. FB may not have to follow wiki rules but they have to follow the market rules. Neither Mark nor Facebook could set the price of a stock dividend or split. Mark can't make the market. Anything other than a perfect 1/3 for 3 times the shares would people getting something for nothing. I have participated in investments that involve both stock dividends and regular dividends. I am trying to stop all this confusion. I know you really don't like me so I am sorry for responding. You have to know when something disturbs the mathmatical equations and logical reasoning in my brain it hurts so I have to correct it to make the hurt go away. Anyway sorry I will stop there.

  • Reply to

    Stock split.

    by hoanchi69617 Apr 29, 2016 8:58 PM
    benzilla999 benzilla999 Apr 29, 2016 9:53 PM Flag

    It will not be 2/3. That would make the transition discontinuous. The market could not account it. It will be 1/3 the price but you don't need to take my word for it. Here is a cut and past from Investopedia regarding stock dividends.

    Stock dividend: If XYZ Corp. announces a 2:1 stock dividend instead of a cash dividend, the adjusted closing price calculation will change. A 2:1 stock dividend means that for every share an investor owns, he or she will receive two more shares. In this case, the adjusted closing price calculation will be $20*(1/(2+1)). This will give you a price of $6.67, rounded to the nearest penny.

  • Reply to

    Stock split.

    by hoanchi69617 Apr 29, 2016 8:58 PM
    benzilla999 benzilla999 Apr 29, 2016 9:22 PM Flag

    The date is not announced yet. It will be voted on 6/20 and a date will be set after that.

    You will have 500 shares of your original stock and 1000 shares of class C. The catch is that all the stock will be priced at 1/3 the price right before the split/dividend.

  • Reply to

    What's the catch here ...

    by tommystudley Apr 29, 2016 6:00 PM
    benzilla999 benzilla999 Apr 29, 2016 8:46 PM Flag

    It is very simple. The date has not been set yet. It will be voted on (just a formality) 6/20 during the stock holder meeting. So date could be 1 month or maybe a year or more after the meeting but probably closer to one or two months after 6/20.

    You will have 1000 of your original shares and 2000 C shares so a total of 3000 shares. The stock price will be 1/3 of what it was just prior to the split/dividend. As far as price it will be a wash. You start out with 1000xpps or 1/3 x 3000 xpps=1000pps where pps is the price per share before the split. If you look at GOOGL, the price a couple of months before the split and couple after were very close so split is likely to not do much.

    I tend to think that FB will perform on its own merit as it has in the past and if it continues to do well the stock price will do well. Other than that, the split/dividend for FB is really a non-factor. 3 times the stock @ 1/3 the price will be the same as the original position before the split/diviidend.

  • Reply to

    What "FB" Red ?????????

    by cat_tracker_2000 Apr 29, 2016 9:35 AM
    benzilla999 benzilla999 Apr 29, 2016 9:53 AM Flag

    Option expiry Friday. FB may gain some traction and pull itself up but right now the option mm seem to have it in their grasp at the moment.

  • Reply to

    My Opinion on FB dividend

    by fr2012endofworld Apr 29, 2016 12:47 AM
    benzilla999 benzilla999 Apr 29, 2016 1:25 AM Flag

    The shares are going to be tripled and the price will 1/3. After the dividend the stock would be $50.00.

    I think that FB will well but it will do it on its own volition. The split will be a non-factor.

    Take a look at Google's split

    GOOGL

    1/2/2014 1113.12
    4/2/2014 1135.10
    Split 2 for 1
    4/3/2014 571.50
    6/3/2014 554.51

    Todays price is $705.06

    If you look at Google's split, the stock pps was pat two months before the split and 2 months after the split.

    2 years after the split, GOOGL pps is nowhere near the price prior to the split.

    This is a good example because this is showing the mechanics of recent split in close sector with a very high price. This is not to say that FB wont do well but FB will do what it does based on how it performs.

    The split will not be positive or negative. It will actually be a non-factor. If FB manages to more than triple its earnings one could conservatively expect the price to triple.

  • Reply to

    FB question for a stock market pro

    by fartnose1 Apr 28, 2016 8:13 PM
    benzilla999 benzilla999 Apr 28, 2016 8:42 PM Flag

    A PE is calculated with GAAP numbers. The numbers that you are listing are non-GAAP. For the year 2015 the non-GAAP numbers are 2.28 but the actual GAAP numbers are 1.29. You can find this on FB 10K filling.

  • benzilla999 benzilla999 Apr 28, 2016 8:34 PM Flag

    Yea I have played around dividends but a stock dividend and a split are functionally the same. Like a cash dividend it is adjusted but just with stock instead of cash. The stock price will not recover like a cash dividend because the dollar amount will be substantial.

  • benzilla999 benzilla999 Apr 28, 2016 5:58 PM Flag

    The value immediately before and immediately after are the same to the penny. What happens after the dividend or split is then up to the market.

  • benzilla999 benzilla999 Apr 28, 2016 5:55 PM Flag

    Yes that is correct but that is what ilovedthe80_s said.

  • benzilla999 benzilla999 Apr 28, 2016 5:53 PM Flag

    Bingo! Thanks, that is exactly how it will happen.

  • benzilla999 benzilla999 Apr 28, 2016 5:51 PM Flag

    A split and a stock dividend are the same thing. I have tried to say this several times in severa ways. Lets go to Investopedia and see how a cash dividend and a stock dividend are adjusted:

    Go to any other site and you will find the same thing. People should know this.

    Cash dividend: When distributions are made, the adjusted closing price calculations are quite simple. For cash dividends, the value of the dividend is deducted from the last closing sale price.

    Stock dividend: If XYZ Corp. announces a 2:1 stock dividend instead of a cash dividend, the adjusted closing price calculation will change. A 2:1 stock dividend means that for every share an investor owns, he or she will receive two more shares. In this case, the adjusted closing price calculation will be $20*(1/(2+1)). This will give you a price of $6.67, rounded to the nearest penny.

    These are all cut and pastes from Investopedia. The above example is exactly how a 3:1 stock split is adjusted. It does not mater what the bozos on CNBC say. The reason it is being called both a stock split and stock dividend is because the process is identical.

  • Reply to

    FB 126 close

    by stockster66 Apr 28, 2016 1:31 PM
    benzilla999 benzilla999 Apr 28, 2016 3:38 PM Flag

    Most of this is just the big guys adjusting their shares and the option market makers winding positions. It sucks but what can we do.

  • benzilla999 benzilla999 Apr 28, 2016 3:18 PM Flag

    If you want to keep playing roll your options but I would sell now and buy again on Monday. It may go up tomorrow but they may fade it more because of options expiry.

  • benzilla999 benzilla999 Apr 28, 2016 3:16 PM Flag

    Option expiry tomorrow and the stock always seems to fade after a good earnings. Last quarter was an exception but if you look at prior earning you will see how they seem to always kill option buyers.

  • Reply to

    FB 126 close

    by stockster66 Apr 28, 2016 1:31 PM
    benzilla999 benzilla999 Apr 28, 2016 3:14 PM Flag

    Really? Up 9 in the last hour? Don't know where you are getting that info.

  • Reply to

    Not Sure Why?

    by cashworkswell1 Apr 28, 2016 1:30 PM
    benzilla999 benzilla999 Apr 28, 2016 3:11 PM Flag

    Its unfortunate but it seems as though the stock is faded after a good earnings announcement. This always happens but last quarter was an exception. Also Friday options expiry will pull the stock lower and the market is not in a good mood.

    As far as where it is in a year, I don't think anyone knows.

    GL

  • Reply to

    I loaded up on options today

    by i_am_mothra_stewart Apr 27, 2016 4:33 PM
    benzilla999 benzilla999 Apr 28, 2016 10:47 AM Flag

    You can chart it on other platforms. Yahoo is not a good platform. Your biggest rises in percentage came much earlier.n It capitulated much of the gain after the big rise. After that report stocks like RIMM, BIDU, where rocketing. It was a great time for many momo traders. I still made money with butterflies and backspreads.

FB
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