Wednesday, July 25, 2012

Stock Talk - My opinion on Facebook

Yes, I know...it has been a while since my last post.  I've been busy again with my CPA, working extra hours, exercising, and spending some time with the family.  This blog isn't a full time job...unfortunately I do not get paid enough to write these articles.  I have been writing, but sometimes I feel an article isn't good enough to publish.  I have several of these articles that are just hanging out there.  I know...it is a shame.


Anyways...I would like to write about a well recognized company...Facebook.  This is from a financial perspective.  If you do not know this by now, I am a big Sci-Fi fan.  I have been known to make statements about aliens from time to time.  Statements like...if aliens come to Earth and are looking for something to eat, I'm certain they will stop by McDonald's, drink a Coke, and perhaps have some Starbucks (disclosure, Military Millionaire does not own any shares of these companies).  I'm certain that if aliens are squirreled away somewhere on this Earth more than likely they will have a Facebook account as well.

That was off-topic...anyways...When you decide to purchase an asset...you need to buy them at a good price.  Warren Buffett has said that he would rather buy a great company at a fair price, than a lousy company at a great price.  It is my opinion that currently those companies mentioned above are great companies.  As with most publicly traded companies I do have some issues with companies that offer stock options to employees, executives and board of directors.  It has been a while since I've read over these company's annual reports.  Still...I'm pretty sure they still have these terrible practices.  I haven't looked at Facebook's compensation package at all.  The reason why I haven't is because the company has a PE ratio of around 90.  I couldn't buy something at such a high PE ratio.  Too much uncertainty around earnings at this time.

However, it is a company that I have on my watch list.  I have decided that I will probably create a watch list of stocks that I am interested in.  I may even start discussing some investing strategies, but I will hold off on discussing this information at this time.  I have been out of the game of researching stocks.  However, I may begin to do this in the near future.  More than likely this will happen after I free up my time by  not having to study for the CPA examination.

Let me know what you think...do you want me to talk about stocks or would you rather me discuss a different topic?  Let me know.

Full Disclosure:  Military Millionaire does not own any of the mentioned stocks in this article.

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