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For those who sold Apple to buy Facebook, how's that trade workin' for ya?

post #1 of 5
5/21/12 at 10:16am
Thread Starter 

From what was on the wires, more than a few hedge fund managers dumped AAPL to buy FB. Given that Facebook was flat on its open and now down 10%, while Apple is up 4%, one has to wonder how pro traders could get sucked into the hype that has been Facebook. Watching TV this weekend was like watching a non-stop series of Jim Cramer wannabes. From CNBC to Bloomberg to CNN to Fox News, everyone seemed to be on the pro Facebook bandwagon. I have bought some dogs over the years. But I would never sell something with a 13 P/E to buy something with a 90 P/E.

 

So again, to those who sold their AAPL to buy FB... how ya doin'?

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post #2 of 5
5/21/12 at 11:20am
Quote:
Originally Posted by Jag_Warrior View Post

From what was on the wires, more than a few hedge fund managers dumped AAPL to buy FB. Given that Facebook was flat on its open and now down 10%, while Apple is up 4%, one has to wonder how pro traders could get sucked into the hype that has been Facebook. Watching TV this weekend was like watching a non-stop series of Jim Cramer wannabes. From CNBC to Bloomberg to CNN to Fox News, everyone seemed to be on the pro Facebook bandwagon. I have bought some dogs over the years. But I would never sell something with a 13 P/E to buy something with a 90 P/E.

 

So again, to those who sold their AAPL to buy FB... how ya doin'?

 

but but but I can get 14 FB shares for 1 AAPL...

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We know where you are. We know where youve been. We can more or less know what youre thinking about. - Eric Schmidt
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post #3 of 5
5/21/12 at 9:27pm

Hopefully this will wake the market up to fundamentals. FB getting justifiably reamed for its unjustifiable enormous and unrealistic P/E, will maybe, just maybe, in such a wonderful world, make AAPL finally have a big flashlight on its incredibly, unrealistically low P/E. Now, they just have to put AMZN's STUPID P/E in the spotlight, and maybe order will be brought back to Wall Street. :)

 

I feel bad for those who bought FB. Must be miserable right now. Who knows, maybe it'll go up again, but it's a classic terrible investment, a classic overhype story, and a classic "steer clear".

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post #4 of 5
5/22/12 at 6:43am
Quote:
Originally Posted by Godzilla View Post

)

I feel bad for those who bought FB. Must be miserable right now. Who knows, maybe it'll go up again, but it's a classic terrible investment, a classic overhype story, and a classic "steer clear".

Yeah... This one was pretty easy to predict, but capitualation in AAPL was pretty close for me. Still down $30/share for my last put assignment after the bump but not worried now that FB has been a flop and unlikely to pull more money away from AAPL.

...in fact, if I was an early FB investor, my money would have been quickly diversified into AAPL. Maybe that is what we are seeing... How much AAPL does Zuck have now...
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post #5 of 5
8/23/12 at 11:06am
Thread Starter 

In the time that Facebook has fallen off a cliff, now to the tune of -48%, Apple is up 25%.

 

What I find amazing about Facebook is that the TV news outlets (even Bloomberg and CNBC) hyped and pumped this box of Dutch tulips like there would be no tomorrow if you didn't buy into the FB offering. But now, they're all tripping over themselves to expose the shortcomings of this company and its stock. I can't remember the gentleman's name off the top of my head, but there was at least one analyst who had the b@lls to call this one accurately, and ignore the hype during the FB road show. He said, "would you buy stock from a guy wearing flip-flops and a hoodie?!" And considering what we're seeing (or not seeing) from this kid, that was a brilliant call. He may be an excellent computer engineer, but he does not have what it takes to be a chief executive officer, IMO.

 

Over the next nine months or so, another 1.8 billion Facebook shares could hit the market. And with current insiders and early investors already dumping shares as soon as their lockups expire, one could expect some percentage of that 1.8 billion to knock this dog down even further. Not a guarantee, but certainly a risk. Apple has some risk associated with it too. But I think the new iPhone will be a big hit (if it is anything like the rumors suggest) and the next iPad should be a hit as well. That's to say nothing of how AAPL's sales and profits would be helped by other products that are currently just rumors.

 

Sold AAPL to buy FB...

 

 

How ya doin'?! lol.gif

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