Investing in facebook on its first day?

[Dwight]

As many people know facebook is going public this friday. My portfolio has already grown a little, but this might be the only time a major corporation is going public for while. I was wondering if it is wise to invest in it on its first day. Moreover, what time of the day should I invest in it or what patterns to follow? I have the ability to set up a basic limited stock where I can set up a buy exactly when the market opens at whatever price I set. What is a good price or lower should I set if I invest right as it opens?

[John W]

Irving Fisher in his 1930 book "The Theory of Interest" and John Burr Williams's 1938 text "The Theory of Investment Value" established that a value of something is the summation of all the cashflows discounted to a present value by a discount rate. Knowing that, if we take what we know of Facebook's future earnings into account we have a value of $0. So there's your starting point.

The prices are going to be driven by behavioral economics for some time and won't be anywhere close to a reasonable value.

[coraann]

Follow the advice of your stock broker.
Isn't that what you pay him for?

[JoeyV]

1) Who has a stockbroker that offers advice?

2) Why would anyone listen to the advice of a stockbroker?

3) John W is full of poop again.

[raysor]

Don't follow the advice of your stockbroker. Even though he is a professional with maybe many years of experience and knowledge of investments and markets.
No, follow someone here on Yahoo, much more sensible.