Twitter's (TWTR) Opening Day!

After my posting yesterday regarding Twitter (TWTR) you may be asking, so what is the rest of the story and how did the opening go?

Well, the ticker was scheduled to start ticking on the NYSE at 9:45 a.m. EST for Twitter and there was a one hour delay.  I sat here in my chair watching and the first trade did not go off until 10:45 a.m. EST.  As soon as I saw the opening price of $46.00 a share, up $20.00 per share from what they announced their opening would be I was disappointed with the fleecing they were sticking it to the investors.  In the first hour of trading we saw over 68,000,000 shares fly off the shelf.  That's over 1,000,000 shares per minute.  After the first hour of trading orders started slowing down. 

The day range was $44.00 per share to $50.09 per share and at the closing bell ended at $40.90 and is up in after hours trading slightly.

So did I buy any Twitter's (TWTR) stock today?  NO! And here is why.  The opening price was over inflated and a fleece on investors.  Twitter opened above its own one year projection of $40.00 per share, which should make any investor stop and think.  The price of it's opening announcement of $26.00 was inflated $20.00 per share to open at $46.00 dollars per share.  If they had opened it at $26.00 per share as announced with a one year projection of $40.00 then it would have been a buy.  But definitely a pass when it opened at $46.00

You are interested in Twitter and want to know when to buy?  Well, my personal opinion is I think we are going to see a lot of investors taking a bath from their purchase today.  I think they are going to have to hold it for quite a while to get a decent return.  If you bought shares at the high of $50.09 today, you will have to wait until the stock increases to $60.11 just to see a 20% profit.  I do not see Twitter hitting this mark for quite a while.  I expect to flatten out when all the bunk is over with at around $19.00 to $27.00 per share.  When that happens I would consider buying.  But still be prepared for a wait to get your 20% or more upward trend making it viable to sell and collect your profits.  Personally I NEVER sell an Individual Stock until it is up over 20% and it is worth my while to take my money and run.

The so called "experts" however declare the opening day of Twitter (TWTR) a success.  I could personally not disagree more.

http://finance.yahoo.com/blogs/breakout/4-reasons-twitter-ipo-rocked-where-facebook-rolled-192651553.html

Why I disagree I have already explained.  But I think the wise investor will be waiting for Twitter to flatten out and continue to monitor it until it becomes a stock they are willing to take a chance on in their portfolio.

Gus



Disclaimer: Make sure to review any information found on this blog site with your personal financial advisor before making any decisions. I am providing general information and not financial advise. I am not a licensed stockbroker or financial advisor.