Do you friend or unfriend Facebook (FB)? Why choose? (July 25, 2012)
ZNGA FB ZNGA
I’m Dan Fitzpatrick at StockMarketMentor.com on Wednesday, July 25th. I’m here in Chicago; I’ll be speaking at the “Invest Like A Monster” conference on Friday morning, hope to see you there. Okay, just a real quick one here; Zynga ( $ZNGA Zynga Inc ), you know they do a lot of their business with Facebook ( $FB Facebook Inc ) and they announced that they’re kind of struggling over there; stock dropped big time. So a couple things; first of all do you want to buy this thing tomorrow morning? Wait for it to trade for about five minutes or so, if the stock is up higher than it was when it opened then go ahead and take some, but I would suggest setting your stop below where the stock’s traded during those first five minutes; again if it’s up, say above where it opened five minutes in, then go ahead and buy the stock, it’s just a little goofy bounce. Look, these guys make like, what, like virtual farm animals or something like that, I’m obviously not in Zynga’s ( $ZNGA Zynga Inc ) demographic, I totally get that, but the bottom line is, it’s not like their curing cancer or anything so if the stock comes down take it for a trade to the upside but only if it is moving up, only if it’s above its opening print and if it does not stay above, if it doesn’t get above its opening print then you don’t want to be long this stock. Also, Facebook ( $FB Facebook Inc ) you interested in trading this? These guys announce earnings tomorrow, I wouldn’t be touching this thing because you really don’t know, it’s going to be interesting, you don’t know when they announce earnings Zuckerberg, who probably won’t be present, but he will be wearing a hoodie somewhere I’m sure of that, you don’t know whether he says, “Thanks for the dough sucker,” and the stock plummets or they announce an awesome quarter; Facebook ( $FB Facebook Inc ) you know absolutely ramps and Zuck says, “Well you should’ve friended me sucker;” so one of those two things is going to happen and I would suggest waiting for Facebook ( $FB Facebook Inc ) and trade it the same way as you’re trading Zynga ( $ZNGA Zynga Inc ) and that is wait for the stock to make its move and then if it starts moving the contrary way, in other words, if it starts reverting to the mean then take that for a ride that way Facebook ( $FB Facebook Inc ) comes down you buy it trade it to the upside for a trade with a tight stop. Same thing with Zynga ( $ZNGA Zynga Inc ), Zynga ( $ZNGA Zynga Inc ) comes down, boom, down there you take this thing for a ride to the upside with a tight stop not because it’s a bargain only because the stock’s snapped down too far and you’re trading the rebound. Okay members, by the way I’ve got to say it again, listen to me pounding the table, I had to hold the microphone so it didn’t fall off the monitor; listen, if the stock doesn’t meet those parameters don’t just go buy it because you feel like buying something, if you feel like buying something go to Target and get a new pair of underwear. How’s that work for you? Okay, members get over to the Strategy Session, a lot of stocks to cover. Free Chart