FB earnings preview <\/a>published earlier this week.<\/p>\nFB is a stock with a growth-stock valuation, but we thought that the company was in the earlier stages of growth, and that it would eventually exceed its IPO price of $40 per share.<\/p>\n
Morningstar has an intrinsic value estimate on FB of $34, which we think is conservative. Our own internal model values FB closer to $75, which we think is too aggressive. Adjusting for the flaws and assumptions in all valuation models, we think FB would be getting fully-valued closer to $50 per share.<\/p>\n
No question this was a strong earnings report for FB, even though Q2 ’13 earnings for technology has been rather subdued in general.<\/p>\n
The late January ’13 high for FB was $32.51, and we would expect the stock should find good support near that price level.<\/p>\n
Today’s trading action represents a clear breakout for the stock, leaving a lot of doubters in it’s wake. We think the stock will work higher over time, but we will be fully prepared to take gains along the way.<\/p>\n
Thanks for reading. We’ll take a victory lap on FB’s trading action today.<\/p>\n
Trinity Asset Management, Inc. by:<\/p>\n
Brian Gilmartin, CFA<\/p>\n
Portfolio manager<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Facebook (FB) is up sharly this morning after report very strong financial results last night, beating consensus…<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[57,22,1],"tags":[],"class_list":["post-2250","post","type-post","status-publish","format-standard","hentry","category-facebook-fb","category-fb","category-uncategorized"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/2250","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2250"}],"version-history":[{"count":7,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/2250\/revisions"}],"predecessor-version":[{"id":2258,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/2250\/revisions\/2258"}],"wp:attachment":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2250"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2250"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2250"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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