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Marc Chaikin
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After more than 40 years on Wall Street, Marc Chaikin founded Chaikin Analytics LLC in 2009 to deliver proven stock analytics to financial service professionals and individual investors. With the Chaikin Power Gauge, an alpha-generating quantitative model as its centerpiece, Chaikin Analytics... More
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Chaikin Power Gauge Stock Rating Blog
  • Facebook (FB) Would Have A Bearish Chaikin Power Gauge Rating 0 comments
    May 23, 2012 2:39 PM | about stocks: FB

    Facebook (NASDAQ:FB): Key Factors Point to a Bearish Chaikin Power Gauge Rating

    Even though we need one year of data to compute our 20 factor Chaikin Power Gauge Rating, we know that Facebook would have a bearish rating because four of our key factors are clearly bearish.

    • Valuation is Very Inflated
    • Insiders Have Been Selling
    • Chaikin Money Flow is Bearish
    • Chaikin Price Trend is Down

    We have even more evidence to support that conclusion.

    Renren (NYSE:RENN) is called the "Facebook of China." As a social network whose shares have been trading in the U.S. since May of 2011, RENN has had a bearish Chaikin Power Gauge Rating since May 1 at a price of $6.33. It closed at $4.72 today, down -25% since the Power Gauge turned bearish.

    The Facebook Power Gauge Rating would also be bearish today and will probably be bearish in six months.

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

    Stocks: FB
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