Ok ok ok. I am a contrarian and i think FB is ready to go higher.
Why???
Everybody is trying to put a bottom price on FB and looking at indicators we may well have reach it.
Indicators are pointing now to an oversold condition and last trading day was not really nice when it gap down from 18,70 to close at 18,06 and to me it did look like some capitulation.
Volume was high especially at last minute where almost 2M shares were traded to bring down price.
So what is to be expected?
Some kind of short term rally where price should move over the 19$ and this, rapidly.
The problem is that Facebook is not providing enough details on how they will start monetizing mobile customers and until such a time, they will have problems getting back to their IPO price.
Will they ? Yes they will but the road will be bumpy unless they can show investors interesting results and a good plan for future earnings growth.
I feel that at this price the loss potential if far less than the upside potential and even if i would not get all in on this play, it may well be a good time to start accumulating and taking some profit off the table whenever the occasion arise.
This is a social media play and should be played in consequence. A bit at the time and most buying done on the dip and especially NOT CHASING the share price. If it goes up rapidly: great you made some profit then sell some. Again DO NOT CHASE this one as it could be the ideal way to lose money.
As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with extreme caution.
Get THE PLAY OF THE DAY on Twitter : @investman2
Why???
Everybody is trying to put a bottom price on FB and looking at indicators we may well have reach it.
Indicators are pointing now to an oversold condition and last trading day was not really nice when it gap down from 18,70 to close at 18,06 and to me it did look like some capitulation.
Volume was high especially at last minute where almost 2M shares were traded to bring down price.
So what is to be expected?
Some kind of short term rally where price should move over the 19$ and this, rapidly.
The problem is that Facebook is not providing enough details on how they will start monetizing mobile customers and until such a time, they will have problems getting back to their IPO price.
Will they ? Yes they will but the road will be bumpy unless they can show investors interesting results and a good plan for future earnings growth.
I feel that at this price the loss potential if far less than the upside potential and even if i would not get all in on this play, it may well be a good time to start accumulating and taking some profit off the table whenever the occasion arise.
This is a social media play and should be played in consequence. A bit at the time and most buying done on the dip and especially NOT CHASING the share price. If it goes up rapidly: great you made some profit then sell some. Again DO NOT CHASE this one as it could be the ideal way to lose money.
As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with extreme caution.
Get THE PLAY OF THE DAY on Twitter : @investman2
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