BF2S Forums DAST Chat

Macbeth wrote:

George Brady, a 66-year-old recruiter in North Carolina, bought 1,000 shares of Facebook a few minutes after it opened for trading Friday. He said by Monday morning, he sold his holding, taking a $2,770 loss.

Nice job fucking idiot.

Facebook (FB), P/E ratio of 81.6 in an industry with an average P/E of 17.4, and a S&P market average of about 15
(Lower is better. Price of stock / Earnings per share = P/E ratio)

Their estimated PEG (P/E ratio / annual growth) is just under 4.0 - healthy is 2.0, profitable growth is under 1.0
Again, a lower number is better for the investor.

This is Stockmarket 101 for by Clueless Newbies
If this is as much as you understand, then stay away from stocks with a P/E above 20-30 and/or a PEG above 2.0

(So, Facebook[FB] with a P/E of 81.6>30, and PEG of 4.0>2.0, is a no-go)

rdx-fx wrote:

Macbeth wrote:

George Brady, a 66-year-old recruiter in North Carolina, bought 1,000 shares of Facebook a few minutes after it opened for trading Friday. He said by Monday morning, he sold his holding, taking a $2,770 loss.

Nice job fucking idiot.

Facebook (FB), P/E ratio of 81.6 in an industry with an average P/E of 17.4, and a S&P market average of about 15
(Lower is better. Price of stock / Earnings per share = P/E ratio)

Their estimated PEG (P/E ratio / annual growth) is just under 4.0 - healthy is 2.0, profitable growth is under 1.0
Again, a lower number is better for the investor.

This is Stockmarket 101 for by Clueless Newbies
If this is as much as you understand, then stay away from stocks with a P/E above 20-30 and/or a PEG above 2.0

(So, Facebook[FB] with a P/E of 81.6>30, and PEG of 4.0>2.0, is a no-go)

Startups are wholly different, and this is an IPO not a stock thats been listed for decades.

If I discovered the cure for cancer today, set up a company tomorrow and listed it on the stock market the day after to develop and sell the cure what would the shares be worth? Who knows. If someone came up with a better cure the week after they'd be worth nothing pretty quick.

Facebook 'investors' are making the mistake of assuming this counts as a startup IPO though, not the owner cashing in his chips.
It could be another Google but I doubt it.

Cybargs wrote:

Facebook still makes a ton of money through its ad revenue.

rdx-fx wrote:

P/E ratio of 81.6 in an industry with an average P/E of 17.4

Unless they can increase their ad revenue by a factor of 81.6/17.4 = 4.7 then the stock will fall until the P/E meets the average.

Either the IPO investors are going to see their shares drop ~80% or Facebook have a secret plan they've been holding back up to now to increase their earnings almost five-fold.

Startups, IPOs and technology companies are always highly risky - more so when they're hyped and over-valued.

AussieReaper wrote:

Romney finally does the inevitable

what?

admitted he's "cukoo for cocoa puffs"?

we kinda knew that

Joe Liebermann is a whore who would pimp out his own mother if it meant getting attention or votes. Hate that guy.

Last edited by Macbeth (2012-05-30 14:26:39)

Ronmey 2102! Woo!

Cutting taxes to the rich and cutting social programs is the best way to balance the budget, Paul Ryan?

Ty wrote:

Ronmey 2102! Woo!

what a typo

Pfft.  Bunch of entitlement talk going around...

Romney really, really, really needs Florida.  Marco Rubio could help with that.

Spearhead wrote:

Romney really, really, really needs Florida.  Marco Rubio could help with that.

Hence all the voter supression efforts at the moment.

http://www.nytimes.com/2012/06/01/us/ju … roups.html

lol GOP.

Now if only educated financially secure white men were able to vote democracy would truly thrive.