Simple... The market can be irrational for longer than you can maintain a short position.
OFFICIAL Facebook IPO Thread
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Simple... The market can be irrational for longer than you can maintain a short position.
Many of us laid out exactly why NOT to buy into this hype and saved us a TON of losses
So what price did you buy into this dog?
But if people here who are so committed to FB being overvalued, and front running when FB goes down aren't shorting, when would they short a stock?
This should be the perfect storm for them.
It's easy to sit on message boards and criticize companies with billion dollar revenues. Anyone can do that.
I want to know who is profiting from making the right call. Who walks the walk.
If you knew there would be losses, why aren't you shorting?Many of us laid out exactly why NOT to buy into this hype and saved us a TON of losses
I don't have any investment interest outside of penny stocks. The reason I started this thread is because I am a huge fan of Peter Thiel and all of the value he has created, not to mention what a social game changer FB has been.
Then you would lose money. I said you should consider it. It's called value investing. People are often overly fearful at the bottoms of markets and overly optimistic at the top.
A share price of $200 would also make their market capitalization 427B, second largest company publicly traded in the US? What would justify this? Possibly explosive growth to 10B in profit a year? Can you quantify how they would be able to do this?
Again, its simple. I can say the company is overvalued and would have to maintain explosive unrealistic growth to be worth 100B. But I can expect the market to be irrational for at least a few years.
The fact that fb has dropped in value so quickly is actualy unexpected to me. Though I may see that its overvalued, I didn't expect the market to see the same thing. Usually they will buy into hype until a few stagnant earnings releases.
This is the most ridiculousness statement in the whole thread. Have you ever invested money before? The key to beat the market year after year is consistency. If you are referring to just chasing fads and buying high and selling low like most novices prefer then yes you are correct. If you have a regularly scheduled investing program where you are putting money weekly, biweekly, monthly ect and dollar cost averaging your investments in the long run you will be able to beat the market year after year. This has been proven time and time again.
What I refer to as beating the market is actually beating just putting your money in index funds and letting it sit there forever. We may be talking about the same thing.
Who knew guys like Warren Buffet, George Soros and Jim Rogers were just super fucking lucky over decades and decades of investments...
"Rule No. 1: Never Lose Money. Rule No. 2: Never Forget Rule No. 1."
Lets look at fb like it is say, a restaurant. Holding the same ratio, Would you buy a restaurant for 1M if it made 10k each year? It did make a mere 2k a year ago, so maybe it will make 100k next year right? I mean the food is tasty and the chef is cool among chefs. Holds a patent on cooking hotdogs which could be monetized, so clearly its worth 1M right?
Lets look at fb like it is say, a restaurant. Holding the same ratio, Would you buy a restaurant for 1M if it made 10k each year? It did make a mere 2k a year ago, so maybe it will make 100k next year right? I mean the food is tasty and the chef is cool among chefs. Holds a patent on cooking hotdogs which could be monetized, so clearly its worth 1M right?
You can't speculate and not lose money. The trick is to get out before you get blown up.
You know many restaurants with 800 million customers? You know many restaurants that have the capability to monetize their customers when they leave the restaurants?
You've made some decent points, but this isn't one of them.
Catching a falling knife is fun? Nah, you need other indicators that a trend is about to reverse before buying a falling stock. The indicators could be good corporate news, good quarterly report or even just looking at how the buyers/sellers are behaving (technical analysis).
FB now $28.80
