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Wealth Strategies: "Years" before Facebook gets to IPO price

Tuesday, October 23, 2012 - 04:13

Oct. 23 - Walter Price, manager of the Allianz RCM Technology Fund, says Facebook is improving its mobile business and is a buyer under $25 a share, but feels it will take years to return to the $38 IPO price.

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Later today baseball releases its second earnings report is a public company. That company have to say the win over investors. For his -- and joined by Walter price manager of the Alley and -- and technology fund a which holds almost one point two million Facebook's shares while to get to see you again. The suit her. We -- been lower for FaceBook and head of the earnings report what's the number one thing Mark Zuckerberg has to do with this report. I think you have to convince. Users -- around. Investors -- FaceBook cares about earnings and cares about growing gross earnings. More -- capitalists so I think that's what he's been doing in some of these presentations who's been making them. This is this first chance to really talk to investors with a sense things. Now Google recently said -- ad revenue growth was slowing is a warning sign for FaceBook had the results. I think for the displaced saw the FaceBook we're also gonna see. Some slowing in certainly the results of Zynga that we've heard preannounce a few weeks ago say that there. Their mobile gaming or their gaming business slowing. It. I think on the mobile slide actually FaceBook as a good story. So what do you think that story will be that -- here. Well I think you'll hear the they've successfully monetize. About stream. Abusers. And you'll probably get some to statistics on what percentage of their users are using mobile and and how active they are in. And how advertising starting to work for the men and become a significant stream of revenues so I think. If people connect the dots between the second and third quarters you might get people excited about a group of about FaceBook. And expecting in terms of revenue and income growth what are you expecting in terms of the numbers that it. I think the numbers will be about what Wall Street's expecting. Something around a 30% growth in both but. I think the composition on the numbers will be somewhat different than what the estimates or think mobile will be higher and display will be lower. -- if you're adding to your position it at all in Facebook's shares -- before the IPO. You said he'd be a buyer FaceBook below it's funny five dollars it is indeed stuck below 25 dollars does -- attractive to you. Well that's what we that's what we ought to -- got down to around twenty dollars. And I think if we see this continued monetization that we're expecting in mobile and some. Insight into how they're going to. Deal with the movement of -- users to mobile because the more engaged. -- and I think that FaceBook becomes a growth story for 2000. What happens with the situation where the company insiders are going to be able to sell their shares what does that do in terms of the stock price could there be some downward pressure short term. You know that's that's one of the reasons why it's not a large position. I think that the cross currents between display and mobile. And the all lock up expiration. In the first part of next month about. Those two or issues for the company but they'll be behind them and you know on another month so. You know what because we look at 2013 and I think. Situation becomes. One where you could have better growth than that a moment. Any idea where that stock my return to its IPO price it'll be next year some time if things go really well. All the PO price that's a long way here I mean that would mean a 100% increase though. I don't think we're that optimistic. I think it might take several years for them to get back there and great XQ should with the -- ground and with mobile. All right I -- fund manager -- to price it is you get altered thanks so much. Extra. Be sure to check writers insider platform every day at 1 PM for more wealth strategies segments I'm Rhonda schaffler this is Reuters.

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Wealth Strategies: "Years" before Facebook gets to IPO price

Tuesday, October 23, 2012 - 04:13