Will Investors Regret Not Buying Facebook Now?
On Thursday, as 270 million shares were unlocked, Facebook (FB) sank to an all-time low. And, we're hearing if you don't buy now, you'll kick yourself in days to come.
GAM Investment Director Mark Hawtin is convinced around $20, Facebook is a screaming buy.
"I can value Facebook at $20 for its display advertising business alone," he says on CNBC's Fast Money Halftime Report. "And at $20 you get social advertising and other fee income pretty much for free."
And despite the additional lock ups that are scheduled to expire, Hawtin, says if you can buy and hold, you're making a smart move -- right now.
Although he concedes the stock could trade lower in the near-term, he thinks shares are as close to a bottm right now as they ever will be.
Hawtin says the Street doesn't really understand the business. What matters, he says, is that Facebook has "almost 1 billion users - Facebook is the main real estate in social media. Looking to the future, Facebook will have an opportunity to generate fees of all sorts and the market isn't pricing that in at all."
Trader Brian Kelly largely agrees. "If you buy Facebook at $20, then put it in a drawer for 20 years, when you take it out I think you'll be very happy."
In case you're wondering about the lock-up expirations, another 243 million shares will be released from lock-up between mid-October and mid-November. On November 14, more than 1.2 billion shares will be available for trading. Mark Zuckerberg will not be able to sell his shares until then.
Posted by CNBC's Lee Brodie
