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  • Facebook Is Compelling Me [View article]
    George i strongly suspect your strategy being successful.
    The reason being that if you are already long FB and bullish short term you would wait to sell your covered calls when the dead cat bounce happens and cover when the trend continues thus making a decent profit.
    But that strategy has a problem. you will be losing dollars in your stock position while you make some change in the call options.
    With your current execution, you would have lost both on the call options and with your stock.
    My advice is cut your losses and do nothing until may 2013 .
    At that time FB will trade at fair value... but again ... why do you want to buy at fair value... why not at a deep discount ?? there are 7000 other stocks at fair value why would you pick only FB if it is only fairly valued.

    My gut is you should buy facebook when nobody wants to touch it with a 10 Foot Pole.
    It would probably be in $3 to $4 range with most of the money gone from the bank....
    Aug 20, 2012. 10:22 AM | Likes Like |Link to Comment
  • How Much Lower Until Facebook Finds A Bottom? Lower Than You Think [View article]
    I will buy when it hits $3 when no one else wants to touch it with a 10 foot pole.
    Aug 17, 2012. 08:23 PM | 7 Likes Like |Link to Comment
  • Facebook Valuation Update: Still Expensive [View article]
    I think it will get a lot worse before it gets better.
    I wont be surprised to see it shunned by everyone for a long time when it is in the $3 range and hangs in that neighborhood for a couple of years or more.
    Forget a V shaped recovery... it will take time to regain investor confidence.

    The best time to buy it is when there are no analysts urging us ( SCREAMING ) BUY NOW when no one really cares about it anymore ... when its an unwanted stock ....
    Aug 17, 2012. 03:23 PM | 1 Like Like |Link to Comment
  • Facebook Is Compelling Me [View article]
    I agree that writing covered calls on long positions might be a good strategy to manage losses.
    When i say "Manage Losses" i mean if you already caught a falling knife already.
    Why worry about "Managing Losses" when you can 'AVOID LOSSES" ??
    My advice is only invest when facebook as a company matures and stabilizes its revenue / income models consistently.
    You can keep selling the covered calls with short term expiration dates ( while you keep making pennies on options and losing dollars on your stock positions ). Not a very good strategy.
    My advice is cut your losses now and buy back later in January or February when the lockups expire and after facebook matures is revenue / income models.
    Aug 16, 2012. 08:44 AM | 3 Likes Like |Link to Comment
  • Facebook Is Compelling Me [View article]
    Are you selling covered calls ? arent your shares locked until you close your options ? please do shed more light on how you hedged this trade. that would be interesting.
    Aug 15, 2012. 08:30 AM | Likes Like |Link to Comment
  • Facebook Is Compelling Me [View article]
    A ton of shares ( read Supply ) going to be released .... how can price go up ? I think we will be seeing fair value ( or a good discount to fair value ) in the next few months when we can make a call to buy . Why buy now without knowing the outcome of further supply . ??? why buy now and wait 6 years to break even ?? dosent make much financial sense to me.
    Aug 14, 2012. 08:47 AM | 2 Likes Like |Link to Comment
  • Facebook Is Compelling Me [View article]
    I presume you are bearish. we will know very shortly. I think facebook is a confused company right now ... the lack of direction tells a lot.
    it will take time and a lot of money to stabilize . I dont understand the rationale behind billions of outstanding shares if they really value their stock.
    Facebook is a like the big inferno that has sucked all the oxygen out of the ecosystem and the fire will die out on its own due to lack of oxygen.
    Aug 13, 2012. 02:17 PM | 1 Like Like |Link to Comment
  • Coming Deluge Of Facebook Stock Unlikely To Sink It Further [View article]
    the only answer to this post is FIDELITY .
    Facebook promoters left no money on the table for anyone. I mean anyone. .. The Bankers got left holding the bags, the institutional investors are in the same boat and lastly the individual investors .
    I wish i could predict movement one way or the other. One sure thing is there will be a lot of volatility in the stock price in the coming months.
    You could be long or short and still make money if you choose your entry and exit points carefully.
    Assuming that we do value facebook based on its potential performance Vs Current Valuation on the lines of Apple and Google and we are seeing it is still very expensive by as much as 3X.
    Facebook reminds me of Amazon during the initial days. We had great faith in the final ability of Jeff Bezos to deliver and he finally did... but amazon was a bad investment for many many years for someone to hold.... Facebook is trying to figure out the "Next big thing" and reinvent itself .... in the process we will spend a few years and we will notice that most of the money will be gone from the bank by then... why buy the stock and hold it for next 6 years to just break even when you can pick it up once it is on the path to certain growth and consolidates with a solid business model.???
    Aug 7, 2012. 06:29 PM | 1 Like Like |Link to Comment
  • As it looks for further sources of monetization, Facebook (FB) is entering the world of online gambling with the launch today of a Bingo Friendzy app in the U.K. in conjunction with Gamesys, with punters being allowed to play the game for cash prizes. The social network intends to add slot-machine games over the next few weeks.
     [View news story]
    why would i want my kids on facebook if it is promoting online gambling... kind of scared what they will be getting into later on.
    Aug 7, 2012. 10:26 AM | Likes Like |Link to Comment
  • Facebook (FB +2.7%) is adding to Friday's gains, though shares remain down 19% from pre-earnings levels. The company's lock-up expiration begins on Aug. 15 (10% of outstanding shares), and additional releases arrive on Oct. 14 (9%) and Nov. 13 (49%). As Henry Blodget notes, Facebook's selloff will make it tough for the company to pitch a secondary offering to limit volatility, and could also prevent it from paying a $2.5B-$3B tax bill related to restricted stock by selling some of the shares.  [View news story]
    There are a lot of great companies with proven track records at much lower valuations.
    why buy at $22 when you can buy in Nov for $10 and much lower in single digits next year. ??
    The sheer size of this company's float is mind boggling... insiders get the FB shares for like 6 cents ( Yes ... that is what Mr. zuckerberg pays for his stock options ) ... the stock split 5 to 1 twice before IPO... the cost for early investors is below $1. what do you think they will do when they have the first chance to convert their stocks to cash... take a guess....
    Aug 6, 2012. 04:45 PM | 1 Like Like |Link to Comment