Friday, May 25, 2012

FACEBOOK AT $11.50



WHAT HAPPENED TO THE GREAT FACEBOOK IPO RACE?  THE REALITY IS THAT
FACEBOOK IPO HIT THE FOLLOWING MAJOR PROBLEM INVESTMENT POTHOLES:

(1) THE FACEBOOK VALUATION WILL BE ESTABLISHED AT THE JULY
EARNINGS RELEASE.  THIS FIGURE WILL ALLOW FOR MORE REALISTIC
EARNING EVALUATIONS.

(2) FACEBOOK WENT INTO THE CENTER OF THE STOCK MARKET DEVALUATION
WHICH IS THE RESULT OF DEFLATION.  THE IPO WENT DIRECTLY INTO THE
SUMMER STALL AND LONGER TERM DEVALUATION OF THE STOCK MARKET.

(3) THE INVESTMENT BANK WANTED TO DEFY GRAVITY AND SIGNALED TO
THE INVESTMENT WORLD THAT THEY ARE NO LONGER IN CONTROL.

(4) THE EUROPEAN CRASH IS COMING THROUGH THE BANKING CONDUITS NOT
THE EXPORT MARKET.  THIS MEANS THAT MORE WRITE DOWNS AND LOSSES.

(5) WHAT IS THE REAL VALUE OF FACEBOOK?  THE CURRENT VALUE IS
IN A RANGE OF $9.50 TO $13.50.  THIS IS THE REAL TRADING RANGE AND WILL
CHANGE IN THE FUTURE ONCE ZUCKERBERG FIGURES OUT THE MECHANICS
OF THE NEW EARNING POTENTIALS AVAILABLE IN A DEFLATIONARY MARKET.
REMEMBER, 85% OFTHE MILLENNIAL GENERATION CANNOT PARTICIPATE IN
THE CONSUMER ECONOMY FOR ABOUT 8 YEARS. THIS IS HIGHLY DEFLATIONARY FOR FACEBOOK.  THE DEVELOPMENT OF NEW PRODUCTS AND NEW SERVICES
HAVE TO LEVERAGE DEFLATIONARY EXPECTATIONS.

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