Tuesday 7 August 2012

FB - another bout of selling

Whilst the main indexes continue to claw higher, Facebook (FB) suffered another significant sell off, losing 5% today.


FB, daily



Summary

Considering that the indexes are still very strong, this performance from FB is beyond dismal. Can you imagine how much lower FB would be if SP' sold off just to 1200, never mind anything lower?
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Near target remains a new low in the low 19s, first late summer target is 15 or so. I have high confidence that sometime by late November, FB will be in the $12 to $10 zone.

Fair value remains $4, not that I'd even be a buyer at that level.