BUY FACEBOOK AT $20 A SHARE
Facebook IPO was irrationally priced at $38 a share. The fair value would have been around $20 a share. FB made a disastrous debut in the exchange and losing ground continuously. There are investors, IPO and open market who have put in money at $38 a share waiting for an opportunity to exit. They may exit eventually at a loss. That may put the stock under pressure further. That time would be ideal time to invest in FB stock and wait for 3-4 quarter results. Facebook is profitable, it keeps its nearly one billion users logged in every day and stays there longer than in any other Internet site. FB is aggressively experimenting with new ways to drum up advertising — its main source of revenue. FB may also open up its site to on line gaming in countries where it is legally permitted. Around $20 a share, down ward risk is limited. One can invest for short to medium term, for decent returns.
Facebook is now trading around $ 76 a piece. It has appreciated 380%in two years.
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