Facebook's latest stock climb may not be the "dead cat bounce" that doom and gloomers were forecasting for Mark Zuckerberg's little start-up business.
Full disclosure: I do own Facebook stock.
More disclosure: You should buy some right now. It opened at 38 and was so wildly popular that they broke NASDAQ, the market they were sold in. This is the same portal through which sail Microsoft, Apple, Intel, Sun, and every other tech stock that has made more instant millionaires in the last twenty years than the earth has ever seen. It is sort of like having a concert at the Coliseum so popular that the stadium is in ruins after the show. Pretty freaking hot. Now, months later, you can pick it up at 22 (that is $22 per share). Do it. Be a leader and not a follower.
And talk about "too big to fail." This shit is EVERYWHERE! I am watching the KTLA morning news. Most popular local news in the biggest and best city on earth. Bottom right corner, and what is there? FB logo. Turn on the Olympics, more. Go to ANY popular (or not) website and there it is, a link to Facebook. Now I know that they haven't figured out how to get money from you, but they will and the stock will shoot way past 60. Don't be on the sidelines for this story. Oh, by the way, there will be no story. This will be one of those quiet, tiptoey trips up the charts for Mark and his partners. Today you can be one for $22.
Another reason I push this on all my students, is that this (or any stock) is a great way to stretch your perception of saving money. Now I know I am pissing in the wind a little here, but you should be saving more money. Most of my students save zero. I myself am deep in the red due to the worst timing in the history of real estate. But I am digging my way out, and trying to save anybody that will listen from suffering any more than necessary. Put some money away somewhere.
Whether you are the "bury it in the mattress" type, or you like a savings account that you can get to any time you want, do it. Put some money away somewhere so it will be there tomorrow. And if you can wait until next year, maybe it will be more money. In the passbook a/c you can get 1% or so, so for every dollar you put in will gain a penny by this time next year. I know it doesn't sound like much. Fact is, as any old fuck will tell you, time just keeps going by faster and faster. Where were you last September? Anyway, with a stock purchase or interest-bearing bank account, while that time is rocketing by, you are making money. Who cares if it is only a little?
Oh, and more disclosure: Stock prices can go down, too. That is why the people that bought FB at 50 are sore now. A share of stock is a share of stock is a share of stock. When you buy a share of FB that is what you get. Whether you pay $22, $50, $38 (or $80 in a year), you will have a single share in your hand.
Most of my people are not too comfortable with that, but just wait till one of your friends quits his job and buys a Bentley 'cause he bought the right stock at the right price and cashed in. You will get comfortable real quick. And baby steps DEFINITELY count. So google "stock broker your zip code" and grab your phone. In a few minutes you will have found somebody that will take your $30 and give you a $22 share of Facebook (fees and transaction charges get smaller the more you trade). Don't use online services and credit card numbers until you KNOW you are dealing with someone you trust.
Oh, and "dead cat bounce" refers to a stock that drops in value and then gains value unexpectedly. Just because a dead cat bounces when you drop them on the floor doesn't mean they will jump up and get in your lap and make you happy. FB is NOT a dead cat bouncing. It is a wounded, but healing super beast!
Now get back to work!
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