Zero Risk Investment on the Facebook (FB) IPO
Bright excitement on the trading floor on Friday May 18th 2012, many private investors and investment bankers went haywire over the Facebook stock even though, many investors considered it a busted, battered pig with fleas. The Facebook stock made millions of dollars when the company went public, but these investors made millions of dollars buying pre-ipo prices of Facebook years before the company went public.
As many of you know the IPO of Facebook wasn’t garbage, the actual stock itself was garbage after it was open to the public market, basically making it a dog with fleas that bit the hell out of investors which needs a major cure from the next quarterly results.
Referring to my correct opinions for the Facebook analysis I’ve done in February - “Facebook looks like a solid stock to hold for a good 2 years after the stock stabilizes
The downfall of Facebook was the overvalued price of FB trading over nine times its earnings which is a red flag in any investor’s book not to actually buy the stock. The times I told anyone reading this to buy pre-IPO in which the lowest you would of made was a 12% gain or the highest possible 30-40% gain or higher depending on which time you got into the gold rich of the Facebook IPO buy in point.
On Friday the 18th which was the perfect opportunity to seek out buying Facebook shares was the day where the underwriters where protecting the stock from tumbling below its IPO price that day gave retail investors the opportunity to buy and sell or day trade that trading day. It kept any little traders or pigs to give themselves a chance and research more information on the stock which they could have done to prevent themselves from any potential damage to the portfolio.
Since the underwriters only protected the stock on Friday, making it a day traders paradise of all the volatility, giving time over the weekend for investors to think and figure out if they wanted to keep the stock or trade it away. Since the trading price stayed at $28.00 flat even throughout the whole day, most investors with a slight bit of knowledge just had to make a sale order that Friday or short sell for profits of the downfall.
We all knew Facebook would need to build a stabilization level in order o safely purchase the stock for a long term gain. Facebook underwriters which are the investment banking companies that launched Facebook into its first public offering where the ones that capitalized on taking Facebook into its public appearance on the NASDAQ.
Right now Facebook is a day traders dream, remember I always have a rule of thumb to monitor big IPO’s closely as well as your best stocks, keep up to date with your technical analysis and most importantly the company’s quarterly, annual and press release reports will be a tremendous factor of information on buying Facebook shares.
These reports are solely my opinion, I thoroughly search important documents to attain a really strong portfolio around the average of 200%+ a year, you can listen to my expert stock trading tips or you can choose to observe my information