HOT STOCK TIP!!!!
HOT STOCK TIP!!!!
HOT STOCK TIP!!!!

You should take a short position on RDS/A...I just took a small bite of this stock, and since every stock that I've ever bought goes down in value after I buy it, you should all short the daylights out of RDS/A.

LOL.

Anyone looking to get in on the Facebook IPO, set for May 18?

What do you think of FB as an investment?

Do you like IPO's, as a general rule?

IPO's are wonderful investments - IF you pick the big upcoming company that's going to quadruple in a short time. You always hear about "If you had invested $10,000 when _______ first went public, your shares would now be $609,050.00."

They fail to mention "If you had invested $10,000 when _______ first went public, your shares would now be worth $0, because the company went bankrupt after 5 years."

I have to invest in a company that actually makes something, or sells something tangible. XOM - is in the oil and gas business. HE produces and sells electric. MCD - sells burgers and fries.

Facebook sells ads to make money. Ads don't seem "tanglible" to me.

Some IPO's go quickly up in the first few days of trading, and then loses steam as it's not the "new kid on the block".
Some IPO's go up and stay up. Some IPO's just slide into bankruptsy.

If you have an extra $1000.00 laying around that you want to turn into $10,000.00 - get in on Facebook. If you have an extra $1000.00 laying around that you want to throw away - get in on Facebook.

If you know the true or fundamental value of Facebook it will be possible while observing the initial offered price, you could determine if the stock is undervalued or overvalued. Knowing that, you are making an informed decision about whether to buy or not. I don't know if anyone actually knows the fundamental value of FB, therefore any price you pay for the stock should be considered a speculative play and not viewed as an investment.

IMO, an investment would be the purchase of a stock currently undervalued with a future prospect of growth based on a strong balance sheet with consistent earnings and dividends. Undervalued stocks appear often because the market is driven by emotions, fear and price volatility and the current price offered seldom reflects the true price (or value) of the stock.

I hope you all made some money on my hot stock tip.

I bought RDS/A at $67.57. If you look at the chart, the stock dropped to $65.66 each. That is two full points.

See, I do give great stock tips.

You can forward your finders fees/commissions to me. Just PM me for a mailing address.

LOL.

Tobster,

I totally agree with your thoughts on the FB IPO.

PSX anyone?

PSX...that looks like a good stock to follow.

I might add that to my watch list.

What do you think of it?

Hot stock tip. Buy shares of Altria because someone took a BIG bite out of RGR and has smoked a pack of Marlboro's in the last 4 hours and is working on the next pack at break neck speed.

Three words, just three words....

Who's Your Daddy! :FLEX:

Invalid, are you back in on RGR?

Are you willing to share any other trades that are currently in the works?

Up $2.37 today! Nice work!

I averaged 2.90! It was a big deal because I had pretty much my whole nut riding on that. Smoked so many ciggs I'll need an inhaler tomorrow... LOL

I dumped most of it during the last few hours of trading. Like I said above, I had pretty much everything on that play. Dunno if I 'knew' it would be good but I had a feeling it would.

I'm taking a week off (maybe half the summer LOL) but I'll be watching for something else to come along. I think RGR likely has a little more room to run though. I expect it'll break 50 before mid month, provided there isn't a major market scare between now and then.

I'll bet! :pound:

Did I read that PSX was a new spin off of COP?

I know that most people don't like Jim Cramer on Mad Money, but he recommended not buying either stock, if I read it correctly.

ETA: Scottrade is down for maintenance right now, so I can't check to see if my info is correct.

I generally don't follow Cramer's buys and such, and I might watch his sells for a gap trade... But if he says stay away generally I take that to heart. If for no other reason than he has a horde of zombie traders following him around.

PSX is the phillips 66 spin off from COP. This is an investment based on value and not likely on Cramer's radar. He is better at squaking on tv than trading and is not an investor by any stretch. Kind of an ADHD Don Knots in the leveraged trading world. :smack

I happen to like Cramer, FWIW.

I don't follow his buy recommendations or calls to sell, but I do enjoy the show, that is, when I get to watch it. (We are the last home in the Western Free World that doesn't have cable TV.)

I have learned quite a bit from watching his show, if nothing else, to understand how others view a stock or the markets.

He is both knowledgeable and entertaining. He is making much more money now with considerably less stress. He is a more short term focused analyst though.

He writes some good articles where he can actually elaborate further on fundamentals and current issues. Stock Market Today - Financial News, Quotes and Analysis - TheStreet

My husband loves Cramer. I find him entertaining, but I figure by the time he highlights something, it's too late! Won't be a good deal anymore, due to the aforementioned herd of zombies. I want to be ahead of the curve -- I'm always delighted when he pumps a stock a couple days after I bought it. Heh! :teehee:

RNDY

Opinions?

I got a big strangle on SHLD for tomorrow. 10 weeks of profit, all in.

Cramer likes it. LOL

Sears? You're braver than I am. I don't shop there let alone buy shares.

My main problem with Sears is they have become nothing but a high end Wal Mart of sorts. Used to be you went to Sears for good service and knowledgeable staff. Those days are long gone though I think. Now you can buy anything Sears sells for a better price somewhere else, often with better service.

Of course the trend on Sears is down as well. Looking at the 3 month chart it peaked mid march after a big run up and has been down ever since. The 2 year and 5 year charts show an increase in volatility which isn't really surprising, that's pretty much everything recently.

That said, I don't follow Sears nearly close enough to make a solid call on it. If you think there is a pop to be had I'm not willing to call you on it. I do wish you great luck! I'm just afraid of the mid level retail space as there is a lot of downward pressure from the economy and competition.

ETA: They are below the 50 day moving average so there is a little room to the upside...

Ehh. You need to look up "Options strangle" I'm betting the price will move either under 47.50 or over 55. The more the better. My breakeven from the 50/52.5 strangle.

Interesting. I don't mess with options very often as they can get me in trouble. If I want leverage I usually go with futures as it's something I've taken more time to study and understand better.

With options, you have an unlimited profit potential, but a limited loss potential. I entered the SHLD 52.5/55 yesterday and took a 46c(20%) per position profit earlier, rolled into the 50/52.5. If theres a 10% gain possible by the end of the day, I'll take that. No stress at all once I'm out. I don't need all the money. Heck, $7 a day will pay my cost of living.

I understand that. I don't need much anymore either and pretty much covered my costs playing the swings on RGR earlier. I'll have to read up a little more on playing with options, might be fun. I have been getting bored lately with all my extra free time...

Boink!! Just came back in and exited. In at 2.50, out at 2.81 12.4% profit. It would be better now, but I'm good.

So that's where my husband got it! He bought it awhile back ... at one point, he was up $800-900. Then its earnings report came out, and it beat estimates, but the CEO revised guidelines for the rest of the year, and it dropped like a rock.

I picked some up while it was down ... it's continued to go down, but not catastrophically. Looks like they're going to offer a divided later in the year; a big one, too! Might hang on to this one for awhile.

Whew, only lost $44 today! Was expecting the bleeding to be much worse ... :teehee:

Well, DH only managed to score 50 shares of Facebook. (He had requested 200.)

It's starting off at $38.

Now, the big question ... hold or sell? :teehee:

I laughed inside yesterday when I coined the expression to myself "buy in may and watch it go away." I also mused that I have to be willing to walk on the beach to pick up a few interesting shells when you can smell all of the dead fish around you.

I enjoy cramer too. I want him to slow down a little because he winds me up too tight just before I turn out the light.

It's more fun directing your decision...so sell some when you see a spike and hold a few for souvenirs of this historic moment.

Hey Willow, did your hubby sell at the massive high of 50,000 Euro's a share on FB?

http://www.zerohedge.com/sites/defau...20BATS_0_0.jpg

Okay, did I get this right?

The volume that FB did on the NASDAQ caused the exchange's servers to crash? Is it true that those on the floor had to manually enter trades...and actually write them on paper?

Is there anyone on the NASDAQ floor that is old enough to remember how to write an order on paper?

Does anyone here remember when your local broker wrote your order on triplicate, and then asked you to sign it?

I was amazed and awed back in '81 or '82 when I learned that my local broker had a computer with a mono-chrome screen at the front desk, and it showed current prices on the major markets. I vividly remember the secretary telling me "Some day in the future, the customer will be able to walk in, and place the stock order themselves, right here on the front desk computer, and we will be here to answer any questions. We might even have two or three computers for people to use."

I also remember thinking "If I just had one of those computers at home, I could buy and sell throughout the day, and make money off those stocks." I remember a few of my dad's coworkers thinking that my idea was hysterical, and laughed out loud.

Wait a minute...is this thread drift, or what?

Ok, so explain something to me. Facebook opened at 38 for the IPO. It fluctuated slightly throughout the day, some billion amount of shares were bought and sold, and at the end of the day, the value, still around 38. Why?

Wouldn't so many people buying those shares all at once cause the value to increase? I saw all these news articles about how the first day was going to make people millionaires. Doesn't look like it to me.

So now what?

this will tell you some

Morgan Stanley made big bet on Facebook | Reuters

Totally stunned at the way Facebook went off! :eek:

Been working all day, so haven't had time to delve into the commentary ...

The way I understand it is that when a company has an IPO, the investment banks take possession of the shares from the company before the IPO. These banks are called underwriters.

The underwriters, along with the company going public, determine a value of the company, and the number of shares.

In the case of FB, someone determined that they could sell 2.1 Billion shares, and they thought they could be worth $38 each. So, 2.1 billion shares X $38 a share = about $80 Billion.

The multiple underwriters play a cat and mouse game of monitoring supply and demand of the shares as the IPO takes place. If frenzied demand forces the price up, the underwriters allow more shares to go onto the market place. If the market doesn't re-act kindly to an IPO, the underwriters might hold the majority of the shares until the price goes up.

With some IPO's, demand will sometimes cause the stock price to quadruple, or more...making millionaires out of some traders...but sometimes, the news forgets to tell you that the underwriters carefully limited the number of shares that went onto the market the first day.

In a nutshell, the underwriters don't just plop 2.1 Billion shares onto an open market, and say, "Have at 'er, boys. We'll tally it all up at the end of the day." This could cause a stock to be nearly worthless.

My guess is that some believed that FB could have doubled in the first day, making millionaires out of some traders.

Does this answer your question? Does it make any sense?

Here's what I got form the whole FB IPO. MS ran a tight TIGHT ship on this one. They stepped on a lot of toes doing so, almost the entire banking and investing worlds toes. If I were a tin foil hat guy, or if I thought bankers and investors were spiteful people...

I'd say that others did everything they could to trip MS up on this thing. From trading glitches to dropping fistfuls of shares whenever the price started to climb. All this to keep prices low and screw MS. MS however seemed prepared and bought shares when the prices started to drop, and not on the open market. They had shares in reserve and they'd just purchase whatever was needed to maintain the price.

I think MS comes out of this looking like hero's to future tech IPO's and have just secured a spot as the #1 underwriter of choose for a few years. I think FB shares will trend higher on Monday, even if only slightly. Over the rest of the year I expect FB shares will be fun to watch but will be fairly steady in price as MS has more than a few shares to unload.

Of course I'm not privy to inside info and this is only what I surmise from watching the day unfold along with publicly available information.