{"id":4048,"date":"2012-08-17T05:31:03","date_gmt":"2012-08-17T12:31:03","guid":{"rendered":"http:\/\/montaraventures.com\/blog\/?p=4048"},"modified":"2012-08-20T07:18:18","modified_gmt":"2012-08-20T14:18:18","slug":"facebook-a-buy","status":"publish","type":"post","link":"https:\/\/montaraventures.com\/blog\/2012\/08\/17\/facebook-a-buy\/","title":{"rendered":"Facebook, A Buy?"},"content":{"rendered":"<div style=\"float: right; margin: 10px;\"><a href=\"https:\/\/finance.yahoo.com\/q\/bc?s=FB&#038;t=3m&#038;l=on&#038;z=l&#038;q=l&#038;c=\" target=\"_blank\"><img decoding=\"async\" src=\"https:\/\/montaraventures.com\/blog\/wp-content\/2012\/08\/fb-chart.jpg\" alt=\"\" width=300 \/><\/a><\/div>\n<p>Mike, you&#8217;re kidding right? You don&#8217;t even like Facebook (we know, we read your blog and tweets) how could you have a post with such a title?<br \/>\n<br \/>\nInvesting is all about finding value and exploiting it. At a market cap of $100B you&#8217;d have to be crazy to buy stock in a $4B barely profitable company despite the many other assets it boasts. However, at $20B market cap, while still richly valued, there could be some upside in the investment.<br \/>\n<br \/>\n$FB has $4.33B in sales trailing 12 months. It has net cash of nearly $10B on the balance sheet. It has Free Cash Flow of $1.7B ttm. As of market close August 16, 2012, the market cap is $42B and price per share is $19.87. If we back out the total cash \/ share of $4.37, we get intrinsic worth of $15.50 \/ share and that girls and boys, is interesting as an investment opportunity.<br \/>\n<br \/>\nRecently we saw the first tranche of insiders being able to sell and it put downward pressure on the stock. I think we&#8217;ll see a bounce up in the near-term until the next insider sell off. That could be the right time to take a position if you are so inclined. I&#8217;m now considering it and that&#8217;s not something I ever expected to be able to say!<br \/>\n<br \/>\nSo, YMMV, but a mid-term win could be possible as $FB reaches the $16-18 \/ share price range. Caveat Emptor, as always.<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mike, you&#8217;re kidding right? You don&#8217;t even like Facebook (we know, we read your blog and tweets) how could you have a post with such a title? Investing is all about finding value and exploiting it. At a market cap of $100B you&#8217;d have to be crazy to buy stock in a $4B barely profitable [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19,6],"tags":[],"_links":{"self":[{"href":"https:\/\/montaraventures.com\/blog\/wp-json\/wp\/v2\/posts\/4048"}],"collection":[{"href":"https:\/\/montaraventures.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/montaraventures.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/montaraventures.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/montaraventures.com\/blog\/wp-json\/wp\/v2\/comments?post=4048"}],"version-history":[{"count":8,"href":"https:\/\/montaraventures.com\/blog\/wp-json\/wp\/v2\/posts\/4048\/revisions"}],"predecessor-version":[{"id":4057,"href":"https:\/\/montaraventures.com\/blog\/wp-json\/wp\/v2\/posts\/4048\/revisions\/4057"}],"wp:attachment":[{"href":"https:\/\/montaraventures.com\/blog\/wp-json\/wp\/v2\/media?parent=4048"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/montaraventures.com\/blog\/wp-json\/wp\/v2\/categories?post=4048"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/montaraventures.com\/blog\/wp-json\/wp\/v2\/tags?post=4048"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}