Facebook Stock still has large short positions which considering the high price to earnings multiple of 102 times is understandable. With almost 40 million shares short, a lot of investors must be getting concerned.
The company reports earnings on Nov 4. Analysts expect 52 cents for the quarter versus 43 cents for the same quarter last year. Revenue is expect to be $4.4 billion which is a huge jump from $3.2 billion for the same quarter last year.
The company pays no dividend and at these high levels Facebook Stock has been my primary speculative trade for 2015.
Facebook Stock 12 Month Chart
You can see in the 12 month chart below that Facebook Stock appears to be setting up a new trading range. The prior trading range which lasted from Fall 2014 to late June 2015 was an easy trade. This new trading range has yet to assert itself and confirm itself. The collapse of the stock on August 24 shows just how nervous investors remain when trading Facebook Stock.
Facebook Stock 12 Month Chart to Oct 22 2015
With earnings due out on Nov 4 my next trade is setup in such a way that it should provide a strong return……………….the rest of this article is for FullyInformed Members.
Facebook Stock Trade Alerts For Oct 22 2015
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Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.
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