Also in this playlist...
This transcript is automatically generated
Sources say NASDAQ change rules for entry to NASDAQ-100 to win FB listing will this support shares as FaceBook moves to now twenty dollars a share member went public at 38.
Charlie Gasparino has the exclusive -- what's -- about.
Well I mean there's a lot has lots of reasons to hate this stock and I've been pointing this out for like the last.
Two and a half months including an analyst report I think they came back -- -- about a couple days ago talked about FaceBook be.
Actually a thirteen dollar stock not a 2084 stock as it is right now.
A thirteen dollar stock but here's one of the things that he got this stock where they were gonna get some support somewhere and I do believe the stock is going down to at least twenty dollars a share.
It is Paul is going to be part of the NASDAQ-100.
Within thirty days that we should point out a couple things in the old days to get into this index and this is a -- this is an index that's widely held among mutual fund managers.
Among investors people -- this index and being in that index means a lot it provides.
It provides support for your for your stock price.
In the old days it was all hundred if you took it took a year or so to get into that into that index if you met certain.
Listing requirements like the size of your company nasdaq's clearly meets the size of its company.
But because of its because NASDAQ -- this FaceBook listing so badly.
It did something adjusting it changed its listing requirements inside and NASDAQ-100.
From a hundred days to thirty days not only that I'm sorry -- thirty days or three -- -- it's usually tonight a hundred on the a year to ninety days okay.
Now here's the -- -- they.
In its in its listings pitched -- FaceBook NASDAQ officials sources tell the fox does network essentially guarantee.
-- a ninety day -- ninety day inclusion in the NASDAQ-100.
And that was the margin of -- difference.
Over the of over the New York Stock Exchange which doesn't have an index of this type so they're going to be in there in in ninety days three months that's what I meant to say three months not that thirty days.
Ninety days and here's -- thing that will provide a sort of floor for the for the price I can't tell you where it's gonna go.
But we do know this if you think price action as bad now.
In ninety days the lock up period ends right that means you could sell lot of shares insiders the lock -- is over.
And guess what that's when he gets included into the into the NASDAQ-100 so that you provide someone a buffer the one thing I will tell you this guy's.
I don't know and nobody knows exactly where that floor is yes the NASDAQ-100 helps.
We should point out that even at ten dollars a share in NASDAQ is still fairly big company I still think it's a three.
A thirty billion dollar company -- Nixon to the NASDAQ-100.
But we should point out that these shares are -- don't lower the question is.
How far lower and it really does look like you know this NASDAQ-100 thing does provide that floor.
But as well although although I remember clearly though the word floor being used for that 38 dollar price you know all the underwriters remarkable -- -- we're gonna go when.
Spent every penny they had prevented dead to go below 38 so we've heard the term floor use before with FaceBook to no effect.
Well yeah and that's the point I don't know where the floors you know it could be.
Listen if you look at somebody options trading there was a lot of options that we're trading today as we reported Charlie Brady.
Are a statistician can -- put all these sort of numbers we're options -- trading some of them were trading as high options to buy and sell.
At sixty filed a share but there -- a lot of people betting that ten dollars shares sixteen dollars here but it shows shows you where the market is it's all over the place.
On where this company -- I will say this -- -- march 2 Smart people I talk to say this is a twenty dollar stock one of the reasons why this NASDAQ-100 Charlie Gasparino for.
Filter by section