Here is why you should consider not only unloading Facebook (FB), but also going short.
- Insiders are selling massive amounts of stock. For instance, Facebook saw a gigantic insider sell trade this week. Silicon Valley legend Marc Andreessen, who was a very early investor in the stock, felt it was time to sell, and he really sold: 853,994 shares of the social media giant’s stocks at $77.38 apiece.
- The stock/company is speculatively overpriced.
- The stock is sitting at key technical levels. Should it break below $70 a share, there isn’t that much support until it falls back to $25. A real possibility as per point #4.
- An upcoming bear market of 2014/15-2017. Click Here.
Considering all of the above, it would make sense to approach this stock with a lot of caution. Better yet, consider short selling the stock. If a bear market does develop, a haircut of 50% or more over the next 2 years is not only possible, it is highly probable.
