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IBDvalueinvestin (98.32)

Facebook (FB) will soar on first day of trading.



May 16, 2012 – Comments (1) | RELATED TICKERS: ZNGA , RENN , AAPL

You don't see often an IPO where 3 days prior of 1st day of trading its offering is increased 25%.

That tells me that Facebook demand is not just in the USA but also has worldwide demand for its shares.

This is why I believe Facebook shares will soar on the 1st day of trading.

Problem is if you want cheaper valuations for 15% of Facebook revenue you have to buy shares of ZNGA which trade at forward PE in the low 20's while if Facebook jumps as high as I think it will its forward PE will be in triple digits.

1 Comments – Post Your Own

#1) On May 18, 2012 at 1:00 PM, IBDvalueinvestin (98.32) wrote:

Wow , FB turns out to be a POS in 1st day of trading.

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