Zuck came out of hiding earlier today and the stock is back above $20. Now what? (September 11, 2012)
FB CTCT
Good evening, Dan Fitzpatrick here at StockMarketMentor.com on Tuesday, September 11th; remember what happened here 11 years ago. Facebook ( $FB Facebook Inc ), this is what I want to talk about. I mentioned, just yesterday, that I compared Facebook ( $FB Facebook Inc ) with Constant Contact ( $CTCT Constant Contact, Inc ) as opposed to Constant Comment which is a tea. Constant Contact ( $CTCT Constant Contact, Inc ), I really like this social media trade because I don’t think it’s a trade, I think it’s a pretty repeatable pattern that seems to be working. The company’s got a pretty strong growth rate, you know a high growth rate, so this is one I’d want to add to on any pullback, but right now I think I’m good with where it is. With Facebook ( $FB Facebook Inc ), I think I mentioned, yesterday I think, you want to stay away from this stock unless it starts trading above $20.00, $20.00 is your bogey; if the stock starts trading above $20.00 then you’ve got to look at that and say, “Well maybe this is one that I want to be long;” still totally richly valued, but a lot of stocks are, a lot of stocks are richly valued for years. I don’t know whether Facebook’s ( $FB Facebook Inc ) going to be or not; I kind of think the 950,000,000 users is probably a little bit of smokin’ puffery since probably not 950,000,000 of them are really active and aren’t duplicates etcetera, etcetera; but that doesn’t matter because what I just mentioned, that’s not news to you, it shouldn’t be news to you, it shouldn’t be news to anybody, that’s already baked into the price of the stock. But that 950,000,000 users is not 950,000,000 unique users, it’s just 950,000,000 accounts, whether or not they’re active or not. The reason I’m mentioning that is, don’t think that when I say that I’m giving you a novel theory, I’m not, and we don’t really care anyway even if I am, because I’m not the king of Facebook ( $FB Facebook Inc ), obviously, try to friend me you can’t find me, but what I do like about this is the stocks now trading above $20.00 because Mark Zukerberg came out of hiding yesterday, or earlier today, I listened to some of what he had to say, he’s pretty optimistic about the company and he basically told investors what they wanted to hear which is frankly two-fold, number one, I care and then number two, hey I do have a vision for what’s happening, I think ultimately we’re going to make more in mobile than we have on existing platforms, you know PC’s, PDA’s, Pads and all that kind of thing, so that’s what investors want to hear because that’s the future of the market; so the bottom line is we’ve got Facebook ( $FB Facebook Inc ), this may be the end of the base, perhaps until next earnings. Look they could announce next earnings and have to give tepid guidance going forward and the stock would be $9.00 or they could announce some pretty solid earnings and the stock can be $39.00, we don’t know. But right now we do know that we’ve got a stock that’s trading on the low end at about $17.50, $17.55 to be sure, now it’s trading above $20.00, we’re probably going to get a little bit of a short squeeze; you know there are a lot of shorts leaning on this stock and so if this stock does not fall down immediately tomorrow morning, if it remains trading above $20.00, say the first 5, 10, 15 minutes in you’re probably going to look back and say, “Well this was probably a pretty meaningful low and you’re going to see the stock moving higher.” That’s all I really have to say about it. I have mentioned this a couple of times before, we are going to be opening up Option Market Mentor pretty soon for new members; we’re just kind of doing a last minute scramble on putting some things together, but I’m really excited about it. We’ve got a lot of beta members that have hung in there for longer that I want to mention, trying to get this squared away so I hope if you’re not on our email list you will do that. We don’t spam you, we’re to busy for that, just go over to OptionMarketMentor.com and sign up; I promise you you’re going to be glad you did. Free Chart