Thursday, May 24, 2012

Will Facebook be investors' friend?

[...] as of Friday, the number to watch is the one next to the symbol FB on the Nasdaq ticker - the trading price of Facebook's newly public stock. Initially, the social network is making 421.2 million shares available for $38 each - and that number will start moving the instant trading starts Friday morning. To help readers decide whether to buy a share of their own, the Chronicle sought advice from veteran local investors, both professionals and those who manage personal accounts. 1 "It doesn't feel like a fad," said Don Taylor, president of the Money In Action Investment Club, a Houston-based group of eight private investors that has voted to put part of its $15,000 to $20,000 portfolio into Facebook stock, probably as early as Friday. 1 Recognize the uncertainty, but also the huge growth potential, of Facebook's still-unproven business model, said Mark McMeans, CEO of Brasada Capital Management, a hedge fund based in Houston. General Motors recently announced it is re-evaluating online advertising; if more companies pull back their online dollars, it could portend trouble for Facebook.

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