This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

8 Stocks Set to Soar off Facebook's IPO


Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Another Facebook sympathy play is Quepasa (QPSA), more or less the Spanish-language Facebook. This social media technology company's Latin-American platform, Quepasa, and North-American platform, myYearbook, enable users to meet new people through social games and apps, monetized through advertising and virtual currency. This stock is off to a decent start in 2012, with shares up 13%.

Quepasa has a market cap of $135 million and an enterprise value of $139 million. This stock trades at a cheap valuation, with a forward price-to-earnings of 8.67. Its estimated growth rate for this year is 102%, and for next year it's pegged at 4,200%. This is a heavily shorted stock since the current short interest as a percentage of the float is a whopping 23.6%.

>>5 Stocks That Could Crush the Bears

The way I would trade QPSA off the Facebook IPO is to look for long-biased trades if it breaks out above its 50-day moving average of $3.85 and then its 200-day moving average of $4.07 a share with high-volume. Look for a high-volume sustained move or close above those levels that are near or above its three-month average action of 522,344 shares.

If we get that action once Facebook starts trading or after, then QPSA could easily explode to $5 a share or higher. I say "explode" because this stock is so heavily shorted and the float is so small at just 21.11 million shares.

I would simply avoid any long trades in QPSA is it fails to trigger that move above the key moving averages with volume.
3 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
FB $117.69 -0.74%
LNKD $124.98 -3.00%
RENN $3.14 -1.60%
ZNGA $2.32 -2.10%
ZAGG $8.01 -1.80%


Chart of I:DJI
DOW 17,741.91 -149.25 -0.83%
S&P 500 2,064.91 -16.52 -0.79%
NASDAQ 4,775.3820 -42.2120 -0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs