Would not sell right now. Better to write December 80 calls. They are still over $3.00. Put a few bucks in your pocket and ride out the correction. If the calls expire worthless, as most of them do, you made some money and still own the stock. Long-term, FB is heading over $100. It's a money printing machine.
brandmarty3: You would think at $20K per month, one of the seven could muster up the time to type a press release and let us minions knows what's happening. I almost feel like selling because I'm close to even at $2.75. But there's that constant grumbling in my stomach that keeps telling me to hang on because something good is going to happen. Who knows? Certainly not us!
Been hovering around $2.75 for what seems like forever. Thought a deal/merger was going to be announced in Q1 2014. So far, nada!
Just curious what you guys think is happening? I know we have NOL to pony up in any deal, but aside from those, is there anything else shaking that suggests I should continue to hold? I've been long for almost five years (bought in November, 2010). Keep thinking something will come of this stock and the pps will rise to $10 as some have suggested. Gotta admit, I'm starting to get impatient. The lack of news is the most frustrating part. Any help (advice) you guys can offer will be appreciated. Thanks.
Agree wholeheartedly with your take. Once the NASDAQ kisses 2,000, that will set off sell signals across the board. Truth is, no one really believes this bull market is going to continue uninterrupted.
Predict FB will toy with $80 before retreating with the rest of the NASDAQ stocks on the sell off. Still, long term, buying FB in the low $70s ought to prove rewarding for those who can wait.
As for 3Q earnings, I think the street already knows they will be good. Great 2Q earnings only pushed the stock from the high $60s to where we are today, so I'm not looking for anything more than that after 3Q numbers are released.
hmmmm: Good points, one and all. Appreciate your erudite postings and insight. I'd probably sell if FB hit 80, as well. Good luck. Thanks for your reply.
Recently, several Dow and NASDAQ stocks beat eps numbers, yet still saw their pps retreat. This is what can happen when the NASDAQ hits a all-time high day after day. Something's gotta give.
I suspect that the decreases in pps numbers were mostly do to conservative guidance going forward. Just one more sign that the good times may be over for a while.
As for FB, I think the expected good 3Q earnings have already been built into the price. It's going to take some extraordinary news to get our pps to $100 any time soon. 3Q earnings aside, I don't see anything on the horizon that fits that definition. We already know that revenue streams from WhatsApp aren't expected to have an impact until late 2015 at the earliest.
The correction is coming, and sadly for FB, it will retreat along with lots of other solid companies. But the good news is, if you are a long player, there will be an opportunity to buy in or buy more shares at a price lower than today's $74. FB is a solid HOLD with a SOFT BUY if the pps retreats to $70. or below. I say "SOFT" because I worry more about the NASDAQ than I do about FB's future.
Though I'm still confidently long FB, it just seems to make sense that the NASDAQ is going to get hit shortly. When that happens, all the components of the average, both the good and the bad, will fall with it.
I've been hearing about a 10% correction for six months, and it hasn't happened yet. Maybe the NASDAQ can brush that off and continue to hit new high after new high, but we all know that sooner or later we're gonna face the music.
I still rate FB a solid HOLD right now and will be looking to add to my position if the pps falls below $70 when the correction comes. Furthermore, when the correction comes, if FB manages to hold $70 or higher, I'd view that as a super positive indicator of better things to come.
financeprimitiveart: Yep, pretty much been my point all along. It's the overall market we have to worry about, and not so much FB's intrinsic valuation and/or potential.
I do see the long-bandied-about 10% correction occurring at some point before year's end. That's why I said that if FB can hold $70 through the turbulent times, that will be a very good sign going forward.
Let's face it, if the Dow has one of those down-200-points days, FB is going down, too. I think it's overly optimistic to think FB will add another 40% of upside on top of the 100% gain its already posted over the past 12 months. That would have FB's PE at around 135-:1, and that's a little too rich at this point.
But who knows? All we can do is looks at the facts and project from there. Hey, I hope FB goes to $500 per share. Right now, I rate FB a solid HOLD to SOFT BUY.
cashbar1: I hope what you say is not true because I own a lot of it and think I have a pretty good handle on what they are doing. Also, I didn't say $100 was FB's top. I think it will get there eventually, but I just don't think it's going to rise to that level as quickly as you do.
Keep in mind, to do so means almost a 40% increase over and above the 100% increase we've seen since this time last year. JMHO, but that seems like a pretty tall order, even for a growth stock like FB.
Like I said, I'll be happy if we can hold above $70 for the next few months. Not that there's anything wrong with FB, but the market is due for a breather, and if it goes down, it takes all stocks down with it; both the good and the bad. That's my major concern at this time.
With no significant news aside from the countless "Invasion of Privacy" lawsuits, I think FB's pps will closely monitor the market's ebb and flow for the next few months. All the good news is already priced into the stock, and we won't hear about 3Q earnings until mid to late October. I'm long, and frankly, I'll be happy if we remain above $70 into the fall months.
Still, I see FB topping $100 per share in late '15 or early '16, so buying at the current level may mean a few bumps in the road, it still should prove o be a profitable trade in the long run.
Finally, unless FB buys a company with serious earnings, I hope they put their checkbook in the desk drawer for the next year or so.
Really my point all along, tracey 563. I'm more concerned about the market than FB. But like I said earlier, sometimes the baby gets thrown out with the bath water.
No doubt FB has an impressive pipeline of possibilities. But I think most people already have taken that into account. Well, maybe not Oculus Rift as yet, but certainly WhatsApp and Instagram. Again, not panning or bashing. Just trying to put things in perspective. PPS has more than doubled since this time last year. I do think we have another double coming at some point, but not in the next six months. Besides, would rather see slow and steady appreciation rather than big swings upward and downward. Bottom line is we have a good (baby) stock. We just differ on the due date.
cashbar1: Hope you are right, but the street already knows FB's earnings are going to be good for the next year+. Still, that awareness hasn't moved the pps needle very far. It's that troublesome 96 PE Ratio that spooks a lot of folks. We'll see $100, but not in four months.
cashbar1: No, I don't think FB will hit $100 by January 2015. Gonna be choppy for the next few months. Dunno. Obviously could be wrong, but just have a sense that we will tread water for a while before moving upwards. That PE of, what is it, 96 is gonna scare more than a few folks out of the stock if we fall 10%. Solid HOLD with advice to add on dips into the mid to high 60s.
ilovethe80: Whether you add more at $65 or $75, a few years from now, I don't think it will make any significant difference because FB's pps will be a lot higher.
I know FB had great earnings last time out, but what was a little disconcerting, and what makes me cautious now, is that the stock is only up about 5 points since earnings. Thus, I see a slight pullback, but certainly nothing to worry long-term investors.
I call FB a solid HOLD right now with HOLD going to BUY if the stock does retreat to $65 or thereabouts.
I'm still decidedly long on FB, however, I think the overall market has been acting poorly of late, and I can easily see the long-awaited correction holding sway over the next few months. Most of the pundits feel it will be in the neighborhood of 10%.
Thus, no matter how good the company, if the markets decline, even the good stocks will follow suit. Volatile stocks like FB are particularly vulnerable because of their high PE/Ratio. Stocks with high PE Ratios have more Nervous Nellies among shareholders than, say, an IBM or Verizon.
That said, I think there will be a nice buying opportunity for FB believers between $65 and $68 heading into Labor Day. I still contend FB will eventually hit $100 per share sometime before 1Q 2016, but I see some choppy seas on the horizon right now.
bcpiii: That's the game plan for start-up bios and pharmas, "The less said the better." Kills two birds with one stone. First, the espionage thingm and second, executives have to be careful about forward-looking statements no matter how confident they are in what they say. If it doesn't come to pass, it's lawsuits a-go-go.
Yet, even knowing that, the long intervals between announcements and/or study results is frustrating. I feel like I'm groping in the dark much of the time. But like you, I'm a patient sort, so I'm hanging on; adding shares when I can and hoping for a good result.
Sentiment: Strong Buy
bcpiii: Thanks for that update. Always nice to read that someone views RNN's future is a very positive light.
Biggest hurdle RNN investors have is their own impatience. Everyone wants RNN to break out, and when it doesn't, Nervous Nellies and the like bolt.
Must keep in mind that lots of start-up pharma companies took the long road to success, some as much as ten years, before hitting pay dirt. Amylyn and Cellgene come to mind.
RNN is on the right track, but we are still a few years away from a pps breakout. For the patient investor, .70 is gonna look mighty cheap come 2017 and beyond. Buy RNN, put it under your pillow and check back in 4A 2016. RNN investors need to be content with a longer horizon.
This is not a pan, it's just the reality of the situation. I buy below $1.00 every time. Hold a ton of RNN, so no one wants to see $5 more than I do. I'm prepared to wait.
Sentiment: Strong Buy
clock- Hope you mean both ben and me. BTW, note to slider 5x5: You have been blocked, so save your breath and don't comment on any of my posts.
I am thrilled that FB's pps is holding nicely around $73. It won't take much positive news to propel the stock into the 80s.
Sentiment: Strong Buy