Monday, June 25, 2012
Facebook: plenty of bad press accompanied by heavy selling, immediately after the IPO debut. At one stage, European financial institutions were even touting put warrants with strikes as low as US$22. FB share price however, appears to have made a bottom at US$25.52, and a bowl shaped recovery pattern could be emerging (see chart below). It has been a month since the IPO, and the investment banks are now rolling out their initiation reports. Nomura starts coverage at Buy with TP US$40.