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Is Facebook a Buy Yet?

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  • Description

    Vitaliy Katsenelson of Investment Management Associates weighs in on Facebook stock.

  • Duration 3:21
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This transcript is automatically generated

And speaking of baseball up.

-- -- all that FaceBook -- outcomes -- contrarian view from the chief investment -- -- Denver based investment management associates the -- -- captain Nelson is with us here Vitale.

You say that the day -- the FaceBook IPO with a day of justice when Wall Street got what it deserved please elaborate.

Sure the if you look at the the process when the companies go public that process is -- rigged.

Against the -- fuel companies because what happens even though they -- -- companies hire underwriters to -- public.

In -- declined.

The underwriters -- actually trying to -- to design process to benefit their lord told clients the Wall Street and beyond the pension funds mutual funds hedge funds.

So when they've taken probably usually when the companies go public they usually underpriced and in idea use these underpriced and so when to -- public visit pop.

And and then their client did -- we'll brokerage clients and they'll make a lot of money connected at.

-- incentives.

Yes absolutely actually it was a very fair product does because.

When -- -- we've moved FaceBook went public it basically that was involved in buyers and sellers and the stock was up a little 5810%.

For the date and little debate prep process.

OK also talk a bit about the as -- hedge funds they ordered twice as much as they wanted to get a lot of shorts -- say quote.

I also don't feel bad for speculators sometimes when you look for a bigger fool you end up looking in the mirror a lot of green was going on here right.

The other what I was doing when human company goes public the -- that point if I -- Israeli news but K it's a very expensive stock.

I'm not making it I believe it's overbought but K but -- you -- to toughen both fiscal and conduct of participants -- by and investors and speculators.

Speculators are really buying just because wonderfully but the next day but case that -- so normally that would afflicted -- authority 40% of whatever that percentage is.

He would have made a lot of money for nothing.

Investors Singapore by the basically this should be happy because it reminded the -- dollars.

Not all they know they can buy it that point seven dollars you know up -- -- for ten days to abide with the quota for years.

And fundamentally nothing has changed well the last couple yeah -- couple weeks there was not a single fundamental news came -- that said.

There's something in his there's anything different about FaceBook.

Right -- you do point out that if they love that -- they should be ecstatic to be able to buy it now for 29 dollars.

Would you buy -- for 29 dollars.

-- ICI's IP LOB -- -- before they feel I wrote an article basically saying that the stock was incredibly overbought it.

Inmates would be very difficult to make money on the stock and I would I think all of -- -- had -- -- low single digits and in the high single digits but -- when someone dollar.

Indeed figure I mean have investors gotten too short -- almost too spoiled I think was -- -- too much outrage about the fact that I bought this stock and it didn't go up in price.

Well disliking I -- -- -- there was no Oprah no there's no happen is that it is guaranteed only pursuit of happiness.

You know it's not going to do that when you -- it's -- when it I think it's almost to a human by company at 25 -- -- -- it was a very good chance that you will not make money -- -- special in the short fund so when you're buying FaceBook you're basically saying.

This company five -- yes hello who have revenues.

Much much greater a case so what's happens in the next six know two months three months -- the relevant.

Because you really buy it -- the -- won't run any if you only fueled by the full run.

-- its implications should be relevant -- All right nicely done thank you Vitale cats and -- appreciate your being here good.

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