Investing in facebook on its first day?
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10-15-2012, 09:30 PM
Post: #1
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Investing in facebook on its first day?
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?
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10-15-2012, 09:38 PM
Post: #2
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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. Ads |
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10-15-2012, 09:38 PM
Post: #3
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Follow the advice of your stock broker.
Isn't that what you pay him for? |
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10-15-2012, 09:38 PM
Post: #4
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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. |
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10-15-2012, 09:38 PM
Post: #5
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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. |
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