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Wednesday, May 30, 2012

Don't Buy Facebook Stock For Six Months. No Matter How Low It Goes

Image representing Facebook as depicted in Cru...
Image via CrunchBase
Even if you're bullish long-term on the stock, insider selling after the three- and six-month lockup expirations could depress the shares. ... So you can imagine the selling pressure if insiders didn't have to hold onto their Facebook stock. The first opportunity for certain insiders to sell will be on Aug. 19. And in the 90 days after that, more than 1.7 ... Is Facebook stock a bargain or are you unconvinced? So here it is, in one sentence: Don’t touch Facebook stock for six months. Why? There’s too much potential for insider selling after the first lockup expiration in three months and the second lockup expiration in six months, and that could depress the shares even if you’re bullish long-term on the stock.
Those dips could be buying opportunities if you’re looking to take a position, but frankly, we need some real earnings reports to see just how strong Facebook’s long-term potential is — two quarterly filings at a minimum. Comment below or drop me a line at editor@investorplace.com... Continue to read.

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