StockTrader7's  Instablog

Like many, I have tuned out the hype surrounding the upcoming Facebook IPO. Everyone here knows the possible risks associated with any IPO, especially in the Tech or Pharma sector.

But after receiving an Offering today via e-mail from my online broker, I cannot help but think of speculating with a hundred shares. Maybe even 200 shares. Mind you, I don't think the company has longevity when it comes to massive profits and would likely dump my shares in the first 2 hours, or first two days. I would be willing to get another e-mail from Fidelity saying I was on probation for future IPO offerings if I flip again. Would you do the same?

My wife says I am one of only 5 people left not on Facebook. I was on before mainstream America jumped on Facebook. Just not enough time or patience to deal with it. Would rather spend that time outdoors or doing about 14 other fun things. No doubt they have run the company well and taken the right steps to get a cult following that will probably remain loyal. So it is possible I am wrong about their longevity and they might make money hand-over-fist for decades.

One Seeking Alpha member said he wouldn't touch the IPO with a 10 foot poll. I agree as far as the opening price. But if you could get a couple hundred shares at the offering price the night before, would you speculate?

If so, where & when will you exit? It is hard to have high hopes for a stock that may have already peaked on the profit line, but that never stopped some institutions from buying and driving the P/E to ridiculous levels.