We got lower than expected jobs numbers today. Good manufacturing numbers, Chinese stimulus, and almost a Greek debt deal. So it's a lot out there and judging from price action the markets like most of it.
Below is a cute rising wedge on the Dow Jones Transports $DJT daily chart: Until it breaks to the down side I'm not trying to short this market again.
We got lower than expected jobs numbers today. Good manufacturing numbers, Chinese stimulus, and almost a Greek debt deal. So it's a lot out there and judging from price action the markets like most of it.
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It's huge! (that's what she said) You can say it's overpriced and you'd be right if your talking about facebook stock but what about the Zuckerberg stock? The world is this kid's oyster right now. The opportunities the sheer size of the user base presents is priceless. They're offering 10% or so of the company and will have a low float. None of this is to say it's a shoe in. We live in a world of prices so even the priceless things have one. And people have to be willing to pay it. Everything and everybody is on facebook. We all know that. We all know they make money off advertising. We all know they'll have to grow like crazy to justify the rumored valuations. What we don't know is how they'll do it. That uncertainty coupled with the dot com memories tell us to be cautious. That's important because I'm not gonna say "this time is different" but I will say last time is not this time.
Long term investors want facebook shares I think. They don't want to overpay for them no, but for them to sell them hard the shares would have to be up a lot higher than they open @. Zynga is a poor comparison so I won't. I'm just saying the buzz is worth a play *I promise not to be greedy or stupid*. It's risky but I know for a fact there are people out there who want every share facebook is offering and have the money to buy them. So I know there is demand for the shares. I don't have to marry them but that's just me, some people marry their stocks. And if I see them trading cheap down the line it's a good chance to buy Zuckerberg to me. People who don't work @ facebook want facebook shares in their 401k's some time down the line. One or two brilliant ideas and facebook adds value quickly & easily. facebook stores? The diversity of the world is on facebook so the diversity of opportunities helps facebook by allowing them to change easier. Right now they change too much. These recent changes better be value adding. There's a lot they can do to add value. facebook school? Whole other facebook accounts not connected to your personal account. "go to meeting" looking rooms on facebook where meetings and classes and webinars happen. Of course there's no free lunch. facebook has to grow... a lot..... fast. And that is never easy. The IPO has to do well or it dooms the rest of the social media co.'s that want to go public. Dooms might be a bit much to say but it might not be also.. so. Weather you like facebook or use facebook means nothing. There are tuns of people who do so.... yeah. We will see, but I'd bet on Zuck. The kid did it and "doing" is everything. |