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I shorted FB a few weeks ago, and now I'm up ~10% on that trade. Is $44 the right time to cover, or do I ride this one all the way down? What do you think?
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4Yes, FB could be 50 again someday, so take the money and run!0%2No, FB is toast, let 'er ride!0%1Maybe, why did you do that, anyway?0%0Quack!0%1The poll is expired.
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hmm, well I may have been wrong not to cover at 44, but I'm thinking that I will be vindicated here soon enough. FB just spent $19B in cash and stock to buy another app company, similarly worthless as FB. Just going by numbers here, let's see...
From what Yahoo Finance has listed on FB's books, they've got $5/shr in cash (or about $12B) and a book value of $6. So, say they just spent $8/shr on this acquisition- if they've overpaid by $6/shr (good possibility imo) then they've now just wiped out the entire store of value of FB.
I am soooo going to clean up on this trade when FB drops to single digits.... (investors tend to run away when they see $12B writedowns)
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