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| Photo: FinancialPost.com |
“I’m mad as hell and I’m not going to take this anymore!” -Howard Beale in the movie “Network”
AND Steve Reitmeister about Facebook (FB - Snapshot Report) IPO euphoria. Especially as Apple (truly the greatest company on the planet) trades at just 10X earnings when you back out their large cash position.
This is a classic case of a great company, but a poor investment. Meaning that I am impressed by what they have built and think it is another great American success story. Unfortunately there is too much laughing gas pumped into the FB story that people can’t see straight when it comes to what price to be paid for shares. And that is why it’s ripe to be shorted.
Could it truly be worth more than $110 billion some day?
Yes. But the odds are just far too long on that. I don’t want to bore you with all the forensic accounting on this one. Just consider some of the longer, more established and INFINITELY more profitable firms than Facebook who have market caps just under that of FB’s.
Yes, this is eye opening. So it’s clear that they need 1001 things to go right to deserve to be at these lofty heights.
Read full story at Zacks.com...
This is a classic case of a great company, but a poor investment. Meaning that I am impressed by what they have built and think it is another great American success story. Unfortunately there is too much laughing gas pumped into the FB story that people can’t see straight when it comes to what price to be paid for shares. And that is why it’s ripe to be shorted.
Could it truly be worth more than $110 billion some day?
Yes. But the odds are just far too long on that. I don’t want to bore you with all the forensic accounting on this one. Just consider some of the longer, more established and INFINITELY more profitable firms than Facebook who have market caps just under that of FB’s.
Amazon (AMZN - Analyst Report)
American Express (AXP - Analyst Report)
Cisco (CSCO - Analyst Report)
Citigroup (C - Analyst Report)
Home Depot (HD - Analyst Report)
McDonalds (MCD - Analyst Report)
UPS (UPS - Analyst Report)
Visa (V - Analyst Report)
Walt Disney (DIS - Analyst Report)
Read full story at Zacks.com...
