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Glyndon Park
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Glyndon Park was founded by a CFA Charterholder with more than seventeen years of financial services experience with top tier institutions including The Federal Reserve, Morgan Stanley, and Goldman Sachs. Glyndon Park brings the above experience to offer investment management services across... More
  • Relative Value Play: Long Facebook & Short Linkedin 0 comments
    Mar 18, 2014 1:05 AM | about stocks: FB, LNKD
    • Linkedin (NYSE:LNKD) and Facebook (NASDAQ:FB) have significantly diverged over the last three months with former down nearly 15% and the latter up nearly 25%.
    • For all the post IPO fallout of FB shares being overvalued the running outperformance by LNKD has been nearly erased.
    • Credit the FB management team, including Mr. Zuckerberg, for addressing the changing landscaping and looking to monetize new channels for social networking. I suspect ultimately the retail, casual user market offers far better commercial avenues for FB to exploit than LNKD. Therefore I would suspect the FB will continue to outperform.

    We recommend a pair trade going long FB and short LNKD with equal market value.

    (click to enlarge)

    LNKD data by YCharts

    (click to enlarge)

    LNKD data by YCharts

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: FB, LNKD
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