Facebook (FB) – Let Flighty Capital Fly & You Sit Tight

By now everyone should be aware of the fact that Facebook (Nasdaq: FB) reported excellent earnings results. But the stock has come off its highs reached ahead of the report nonetheless. That is because its performance, however excellent, was not good enough to keep the scarce capital resources of less patient investors in the stock at its valuation. Long-term holders, patient and willing to achieve a better than 20% annual appreciation rate in this stock will be rewarded, but impatient speculative buyers who took positions into its earnings will seek more prospective pastures through earnings season. I suggest investors let the trading capital run away for now; it’ll return again at higher price levels to support even higher levels later on down the road. See my report on Facebook (FB).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Why Facebook's Stock is Breaking Out

After trading range-bound for half a year, Facebook (Nasdaq: FB) shares have found new footing. I see a few good reasons for the start of this latest move. The company is importantly benefiting from fresh news about its operational progress and its valuation, which is serving as a reminder of the special opportunity the shares offer investors. The stock is also positioned to exaggerate the performance of a market now free of previous reasons for concern. And within-sector capital flows from value to growth names could be occurring now as well, which serves Facebook. As a result, Facebook shareholders should let go of any frustrations with the stock’s previous stall and take their fingers off the sell-trigger, because the stock should now begin to fulfill its promise again. I see this breakout driving to $85 without much difficulty, and to $90 as analysts raise their 12-month price targets thereafter. For the year, I see at least 32% upside appreciation potential for Facebook holders, and it appears the stock has started its move toward that goal. See my full report on Facebook (FB) here.

DISCLOSURE: Kaminis is long FB. Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Facebook (NYSE: FB) Should Do This To Unlock Value for Shareholders

I was overjoyed by Facebook’s (NYSE: FB) operational performance this past quarter as were most on the Street. Still, as I watched the stock collapse during its COO’s pre-conference call interview with CNBC (video no longer available at the site), I understood how the industry leader could do better for shareholders. Sheryl Sandberg had a fine interview, but I believe the company inadequately prepared the investment environment ground ahead of the EPS report. That I believe caused it to be poorly received and even today the stock’s compelling story fails to pull in bidders. Facebook has to properly prepare the seeds of price appreciation through clearer and more strategic communications geared toward the investors’ perspective. See my free report on Facebook here.

DISCLOSURE: Kaminis is long FB. Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Facebook – Why I Went Long Again

Two weeks ago, on a day when Facebook (Nasdaq: FB) was dropping by more than $2 to around $74.30 a share, I took a new long position. Warren Buffett is known for advising amateur investors to buy when the blood is on the street, and that’s exactly what I did, but for more reason than the blood alone. There are two other good reasons I see further upside for Facebook in the offing and am still long today, despite the share move to over $78. See the Facebook report here.

DISCLOSURE: Mr. Kaminis is long FB. Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Facebook Can Weather Big Storms

Last Thursday’s market decline had me watering at the mouth, mainly because of the decline of a few stocks on my shopping list. Facebook (Nasdaq: FB) is one of those names, and it’s the kind of stock I think you have to buy when the market goes on sale. Facebook can weather big storms. Unlike Tesla (Nasdaq: TSLA), which I recommended the sale of last week, Facebook (FB) is a momentum name I’m itching to purchase even today. I was lonely when Facebook dipped under $20 a few years ago when I was telling everyone and anyone to buy it. Back then, believe it or not, there were few of you saying the same thing. As it moved toward $30 I continued to reassure friends and followers that it was still a screaming buy. And now that it’s trading in the upper $70s, I’m still looking for entry points for this big future 10-bagger, as Peter Lynch would put it. See the full report on Facebook here.

Facebook’s Mr. Nice Guy Lie

Facebook (Nasdaq: FB) has a philanthropic effort underway in cooperation with internet.org to bring the internet to the two-thirds of the world’s population who are currently unconnected. The social media giant, and others like it including Google (Nasdaq: GOOG), are actively working on this endeavor together. It’s a kind gesture right? No! It’s brilliant business strategy. See Facebook’s Internet Philanthropy is Also Strategic Genius.

Facebook Stock Longs are Haunted by This Risk

By Markos N. Kaminis:

Facebook (NYSE: FB) shares are up another 1.8% today on the company’s strong first quarter earnings report. However, Facebook longs are haunted by a particular and disturbing risk. It’s a risk realized by similar business plans including the likes of AOL (NYSE: AOL), MySpace and other now long forgotten internet and technology plays. Don’t get me wrong; I’ve favored FB shares since the days when post-IPO punditry fell away and left the stock trading around $20. Recently, I salivated as FB drifted on macro issues that tanked the NASDAQ (Nasdaq: QQQ). I then penned Why Facebook is Falling and When to Buy it. I’ve advised Mark Zuckerberg indirectly through pen when his tech-oriented team failed to understand what Wall Street needed to see from it. It was a period where poor management from similar types drove the founder of Groupon (Nasdaq: GRPN) away after the great destruction of value in that stock. Today, Facebook and Google (Nasdaq: GOOG) are working hard to expand internet usage globally so as to maximize their opportunity. And Facebook is working hard to stay ahead of trends among internet users. Its acquisitions of Instagram and Oculus are examples of that, and proof that Zuck is paying attention. Facebook holders should likewise take note of the risk that should haunt the stock for the rest of its days. I’ve covered it in detail in my report: Watch for this Fly in Facebook’s Ointment.

Facebook IPO Windfall if Open to its Users

Imagine how awesome it would it be for Facebook (NYSE: FB) to offer its shares via a social IPO™. With some 800 million users of its now iconic social networking platform, the new king of the internet might score yet more points with its “friends” if it were to offer them access to the company’s IPO. Beyond being just a brilliant public relations maneuver, such access to the new shares should allow the company to achieve an even better valuation than it might otherwise.

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

For Facebook a Social IPO Would Rock

Just do the math. With 800 million active users, if it were to offer its shares at $100 per, Facebook could generate $80 billion if each of its members bought just one share. Valuation aside, the unsophisticated marketplace would likely bid up Facebook’s value beyond the $100 billion valuation some sophisticated investors say Facebook is worth. And given that there would likely remain strong demand among many institutions, Facebook might then achieve an even greater than $100 billion valuation.

Furthermore, the news of a social IPO would likely push more people globally to join the social network, giving lift to the company’s intrinsic value. Thus, like a Newton’s Cradle, the metal balls that rock each other in perpetual motion on executive desks across the country, Facebook’s members would drive its share value as its share offering drives membership growth. I think that’s just brilliant.

As is, the Facebook IPO is the most heralded and anticipated since Google’s (Nasdaq: GOOG) blockbuster offering about a decade ago. The offering’s proceeds and valuation should exceed Google’s and other major internet IPOs like that of Zynga (Nasdaq: ZNGA), Groupon (Nasdaq: GRPN), Vonage (NYSE: VG), Orbitz Worldwide (NYSE: OWW) and LinkedIn (Nasdaq: LNKD). Just the news of Facebook’s registration sent the shares of stocks that might benefit from Facebook’s valuation soaring. Renren (Nasdaq: RENN) and Zynga (Nasdaq: ZNGA) took off like rockets late last week.

I only wonder if the bankers at Morgan Stanley (NYSE: MS), the investment bank said to be heading up Facebook’s offering, have considered this novel idea. If not, just a tiny cut from the commission would do me just fine fellas.

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.