And you pay taxes on the returns……….and if the economy crashes and the banks plays dumb………good luck recovering your money. Read the story of the bank IndyMac and how it screwed up so many account holders.
Jil may be a smart investor, but he ain’t a good deflector with his “this is because the US elections”
“Several factors have conspired to knock markets this month — some earnings disappointment, a brewing conflict between Italy and the European Union over budget spending, criticism of oil power Saudi Arabia over the killing of a dissident journalist and finally, worries that world growth is losing steam.”
“Facebook’s operating margin would sink from its current level of 44% to the mid-thirties over the coming quarters.”
How many companies have operating margins in the mid 30’s? Also, facebook has already proven they can reduce ads, charge more per ad, and increase revenue.
FB was a great buy when I bought it at the IPO price of $38. I added some more when it slipped to $20. Now, at $150, there are better options out there.
Apply similar fundamental question about FBs future revenue and find out convincing answer to you.
If you are satisfied, FB will continuously produce increase revenue - in absolute scale, not relative - you invest it.
There is a fundamental change in FB’s revenue and Profit margin. In the long run, company stock price reflects company fundamentals.
mid-thirties over the coming quarters ==> You need to know how much, that is the key.
Here are the results of my calculations about FB (but do not know where FB will be landing)
Here is the link for the excel sheet (unzip) and change the green highlighted part, see the results in red highlighted cell. This is not proper analysis, but helps to know appx.
From yesterday. Today’s decline will knock all further from the 52wk highs. Micron is now close to 50% off from the top. Did not know Applied Materials had it so rough.