Why Facebook is the oldest trick in the BOOK

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Although Facebook is probably the most popular and most visited website ever, and although it boasts the most users than anything else in the world, It as a website and a company is flawed. As more and more people start finding twitter to be more interesting, Facebook is starting to lose some of its market share in the “social media industry”. But to say that is why it is a bad company is completely wrong. The reason Facebook is a bad company is because Facebook doesn’t exist. It is merely a page on a computer screen and has no real assets or property to value it. Now you might think that Oh well that because they don’t need to they have billions of users world wide and they can make money advertising, but thats assuming that Facebook stays the number one social media website for a very long time. But this industry has been around for only a short time and there are hundreds of social media websites that can do the exact same thing as Facebook if not better, Twitter is an example of a social media company that can steal a lot of Facebook users. And then there are many others that can steal just as many users that twitter has taken from Facebook. A good example is Google and Bing. Bing being a very new search engine but has the same magnitude of users that google has and bing has only been around for a very short time. What this means is that Facebook and all the social media mumbo jumbo that has been getting so much publicity and praise lately from many investment professionals is a bunch of crap. Social media companies in the stock market are just like the Internet Bubble in the early 2000’s and have no real or tangible value but are just creating a huge bubble that is just waiting to be popped once again. Just think about if Tomorrow Facebook lost half of their users due to a Hacker or the next big thing in social technology that lets say maybe apple or Microsoft came out with. But those companies actually have real assets, real customers and real products. Facebook only has one of those, real customers, but those customers aren’t there to buy a product Facebook has, just use it. Think about if people just decided they didn’t want to use Facebook anymore because they found it annoying and they just stopped?

Stock Descriptions, and Logistics behind these choices.

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IMMR- 

Immersion corporation is a smaller technology company that has a very valuable and cool haptic feedback technology that can be utilized with devices like I Phones, Tablets, and any other type of touchscreen device. Lately they have been performing very well Almost doubling their stock price, due to Large increase in profits from deals  with major tech companies for their haptic feedback technology. Immersion is a small cap stock waiting to become a big time tech company. It has proven it can make profits and grow. Although this stock is very promising it should still be approached with caution due to new all time highs, but if played properly it can be very rewarding  and this stock still has a lot of room for growth and profits that can turn this small cap into a big time technology player. 

AAPL-

Apple is a company that has proven it can make very large sums of money and succeed in poor economic times. But lately this stock has been cut in half and for a while looked like it could fall even further. Now that the sell off has calmed down, It could be a nice time to jump into the trade, The stock has a nice resistance level of $400 per share and has enough profits and innovation in the technology sector to take it back up to the same levels it had once traded at its all time highs. This is one company that if they can keep it together can compete with Google and its stock price. This is a pretty low risk trade due to the size and profitability of Apple and can be rewarding by buying in at a low point around 400 and selling anywhere above 450. 

 

ODP-

My personal Favorite, Office depot has a lot of risk associated with where it is trading currently due to the merger with office max, if the merger is not approved then this will definitely be detrimental to the stock, but that is not very likely to happen and the merger is very far in the process. Office depot has been a company with considerable size that has struggled recently due to fierce competition in the industry from retail giants like target, Walmart, and others. But with a merger that will almost double to assets and profitability it is a good medium term buy and the profitability can only go up with a merger, the positive signs that small business is making a comeback in the U.S is a very good sign for office depot. Take extreme caution entering into this trade, as it can fall apart but it is not likely. 

MSFT-

A very low risk trade is Microsoft due to its size, and its very influential position in the computer industry. Microsoft is also releasing the highly anticipated Xbox-One, the updated and improved xbox that takes the place of the highly profitable Xbox 360. These profits can boost the stock tremendously in the next couple of months and now is a good time to get into the trade. This is a great short term investment due to the Xbox-One and a great long term due to its size and profitability. 

 

KKD-

Krispy Kreme another favorite of mine was a very awesome doughnut shop that in the early 2000’s was so successful that it actually became unsuccessful and had too much growth that it became an unsustainable company. The company now in 2013 has seen a tremendous turnaround in its stock due to a new growth plan and new management that will now turn this doughnut shop into one big cash cow, the fact that the company was too big and grew too fast, shows the power that these doughnuts have, now with the new growth plan, KKD is a no brainer and should be highly considered for long term investment.