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Robert Luna, Surevest Capital Management CEO and CIO, on investing in Facebook and if the stock is worth the risk.
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So -- -- -- -- buying at these levels Robert Luna is CEO and CIO at Cerberus Capital Management Robert thanks so much for joining us.
You know I and there are a lot of people out there saying it's like catching a falling -- other people saying at some point this becomes interesting -- someone who got in.
You know before the at the IPO and then sold as soon as you possibly could what do you think is the right number for FaceBook now.
Yeah I guess you can call us the definition of short term investors and FaceBook -- you know we we figured exactly what was gonna happen.
Last Friday that -- have to be some institutional support.
Coming into the sport that stock around the thirty year level.
Which you saw there but the overwhelming amount selling as -- you're starting to see play out today.
So we were kind of looking at this is that we get a free look at that see how the trading take take -- and see how long we wanted to hold -- -- for our clients.
But obviously -- the momentum waned very early with the idea -- we are coming into this market.
With a lot of pressure over the last few weeks ABC -- markets tanking.
And then you know the idea that the NASDAQ could match up orders.
Psychology take over and here's here's what's happening.
But you've got added 38 I mean you couldn't have sold it to much higher than that did you lose money.
-- not we will lose money -- the stock never traded below 38 but to say we made a big profit would be dishonest though.
We made a few pennies -- you know one of our jobs why clients hire us is we have to manage risk we looked at FaceBook as a trade.
Much different from an investment and blob when the trade turned against us and momentum -- we took profits -- -- -- stock.
Robert tell me about your experience trying to -- -- trades in FaceBook.
Did you have a problem did you run into challenges they still waiting for anything to clear out where he stand.
It yet we're not waiting for anything to clear out the what I can tell you -- the shares that we had -- -- for our clients.
Did not come into the clients' accounts to about two after -- hours after regarding started trading.
I think that's one of the problems as well and when you're a trader and you don't know how many shares you're buying or selling right what you're gonna do is try to follow orders and that's what happened what the market.
They get the prices they weren't looking forward -- distorted because the time lapse.
Yet no we got price is that we're looking for we did not put any market orders out there so we kind of had to stagger our exit out of -- out of the trade.
So we got multiple -- on there all of which again were about 38.
Up but nothing nearly close to the opening credit which is about forty -- -- 44 on the stock.
-- want to take -- back to the beginnings as I'm talking to traders this morning you know off the record and they're saying that.
You know they they're only just a minute below thirty obviously you were interested at 38 you thought they had value there.
What has changed for you and what you think is the number now.
Well remember there where they're talking a couple days prior to the actual pricing about being 3536.
And our thoughts going into the trade was -- -- probably get anywhere from a fifteen to 20% pop.
I'm back kind of -- back a little bit as they increase the float and raise the price of that but to be quite honest we were in this for nothing more than a short term trade.
As far as the longer term prospects of the stock right we're really hit -- -- -- as you know show me stock and we wanna see how they make the transition to being a publicly traded companies American investment.
You're not letting go on the record right and that's fine but there's no number you would say right now that you would buy it back at 252031.
You don't even want to -- You know what he had it would look in the mid twenties and half the valuation of a Google I think -- you're probably get some people step up -- in take a shot.
But you don't that's a 30% decline from here is -- who's willing to you know step in -- -- catch that not -- -- OK Robert -- thanks for coming on we appreciate it.
Why did they spoke up.
