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FBN's Charlie Gasparino says a Nasdaq spokesman wouldn’t deny Nasdaq 100 changes made for Facebook.
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Thanks sources are saying -- NASDAQ change the rules for entry into their NASDAQ-100 index just in Facebook's listing.
Will the -- -- helped support shares of FaceBook from sliding closer to twenty backs Charlie Gasparino has the latest on this well I I think we've.
-- Smart money is saying right now this is kind of an interest in story remember used to be to getting this NASDAQ-100.
Which is a major index buyers you know be it mutual funds and traders they -- that index.
It provides sort of a floor for you stock -- he used to be picture in -- -- the one year you have to kind of prove yourself.
Then you get -- -- is what we hope.
NASDAQ impeaching FaceBook did two things number one it says who's gonna change its criteria right we -- we could let would there wouldn't make a change where forget about the year.
We now change if we want we can get you in in three months -- -- important time -- -- member.
Three months is when the lock up period and had on on any IPO including this one and he a lot of -- -- selling that means is a -- they also said.
You come with us -- guarantee you entry into the NASDAQ-100 I will tell you this more than the big FaceBook sign in Times Square remember we talked about that yeah.
As a selling point of marketing.
This is why NASDAQ this is -- FaceBook went to NASDAQ over the New York Stock Exchange -- to its listings because it wanted immediate entry or almost immediate entry.
Into this NASDAQ-100 is kind of an -- -- story the question becomes okay.
Where it is the bottom Wendy -- -- and that's what -- what he really knows I'm just look at the price action today.
It's I think was marginally down today 0% down 2% right about 20000 -- -- got C.
That's that's still an ugly tried -- -- because if and broken thirty yet I -- after an FTSE you would expect the little pop the fact that it's still -- shows that a lot of Smart money -- says the floor on this thing.
Is that when he.
And that's a good thing because that's when they start -- -- hit that in a couple months when the lock up periods over.
And that's when you'll see the selling it may be shares will level off at that point but that's who we are right now with the street trying to figure out.
Exactly where the floor is.
Because they're going to be into this NASDAQ-100.
Went free pretty.
Three months that there here in their guarantee that was that's what will those agreements from the Actuant and we should put out there is that a sort of quote and quote criteria by -- -- What's funny about the NASDAQ is they claim to be so transparent to get any sort of -- -- is like pulling teeth look what is Fred but what this means anybody they want to get in there by the way.
Three months but you know hundred largest companies this is these the sort of half as criteria she's she's my friends to get in this thing.
So quickly and set off -- trip with the SEC that they just changed then.
Time period to get in the NASDAQ is an interesting to do so -- remember these I'm Rick.
Who knows I mean there's anything to be regulated and it's actually a good question.
Anything to be regulated I don't think that this kind of crosses a line you know -- being in the NASDAQ-100 is a selling point.
I don't think it's it's it's -- necessarily.
To flight to create a bottom on the on the on the stock price I will say this would investors you know do we we what we do the stories I can -- -- way to -- and if you -- by.
Buy FaceBook if you if you boarded at 38 can't tell you when to sell it.
I -- -- -- -- some of the factors to consider -- when you own the stocks of the milestones coming up the dates that are important actually happened three months there's going to be a lock up that -- that means insiders can sell that means more downward pressure on the stock.
But in three months time guess what happens -- that's it gets into the NASDAQ-100 means that institutional investors will buy conveyed by that index of stocks of that provides a floor.
Where it goes after that aware -- from now to then is anybody's guess I can tell you Smart money is -- That okay if you look at the metrics price to earnings balance sheet stuff right was -- -- thirteen dollar -- right 1013 nonstop Smart money says well.
Maybe it's more like a twenty dollar stop when I talk to people because.
You don't just they generally judged FaceBook purely on the metric -- judge and -- future.
Will Mark Zuckerberg Sheryl Sandburg and where would -- do was that increased the size of its people forget his name to see seal lowered to see CFO.
Will vote are those three strong enough management team to convert or they had.
All that information that you get on FaceBook which I don't think is that -- you want people do.
Will they be able to convert that into advertising dollars and you know and and make it make a business out of that.
That's the question yet.
There's some -- about their mobile lot where they too late to back right and they generate revenue from that is one of these issues -- also a question of sentiment.
I mean you -- it was the coolest thing out there that gotten out right so much negative press right over this IPO it may -- it's not necessarily users that are looking at but when you look at even the newspaper doing things on how he's not leaving you know get.
What he's in Italy and he's suddenly becomes this really unpopular guy you know -- America yeah you're right about this and -- Here's why it is there was -- degree of arrogance -- can be up to this -- I'm telling you.
His handlers there was a guy of Brunswick that I dealt -- -- And all these are unavailable parental okay all these idiots that didn't give you you -- basic guidance they wouldn't call you back.
It was horrendous and then you know what they said they were tell people that we don't need Wall Street and well -- what what is Wall Street really Wall Street is the investing public.
You don't need the investing public well you're gonna get an education -- -- -- Republican you're gonna like you're gonna get an education and why you need it -- -- over the next ninety days and may be the next two years.
Wherever this thing goes and help -- of Troy though -- -- gonna buy.
Where I doubt it but there may -- Google bikes and then maybe it is a good investment.
Charlie Gasparino thank you so much.
