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Keep Hating on Facebook; Long-Term Investors Love Cheap Shares

Stocks in this article: FB P MS

Just as all of the trash talk and ill-informed misconceptions bode well for long-term investors in stocks such as Pandora (P), these things, multiplied many times over, should serve FB investors well over the long-term. All it takes is an understanding of the company's long-term opportunity, which I detail in several previous articles on TheStreet, thick skin and a bit of patience.

Pessimists, party poopers, short-sighted minds and bears will tell you you're nuts for being bullish FB. Don't listen to them, but -- and, of course, this is merely how I intend to proceed so it might not be the proper course for you -- don't run out and buy the stock today, tomorrow or the next day either.

I bought three shares of FB on Friday for no other reason than to be part of history. Buying three shares of an IPO like this on day one is akin to blowing $20 on a lottery I know I have little chance of winning. But, everybody's talking about it. And it's a big day that transcends the stock market or lotteries and seeps into the mainstream consciousness so I take part.

It took me hours to receive confirmation of my trade. When I finally did, I saw that my cost basis, including commission, stands at a lofty $42.66. But, who cares? I can tell the story to my great grandchildren's children someday. It was worth putting about $135 on the line.

I will keep myself underwater on my miniscule lots of FB shares. Once the stock finds its bottom, I will make long plays that actually mean something. At this stage, it's a bit absurd to even speculate about where the bottom might be, other than to say, it will likely be lower -- maybe much lower -- than the $28 to $31 window Link finds the stock more attractive at.

In addition to the poorly-executed IPO and the pressure of almost constant, over-the-top hate, pay close attention to Facebook's first earnings report as a public company. If it presents even a whiff of uncertainty or something somebody somewhere could construe as a slowdown, look out below. The hate will only intensify and send this thing lower. Think Pandora. Think the standard bear talking point about not being able to monetize mobile.

Think short-term hysteria breeds long-term opportunity for long-term investors. If you understand the powerhouse Facebook can become (as if it's not one already), don't fret when the haters hate, the jokesters joke and the stock goes down. Take it all in. Don't make any hasty moves, but be prepared to pounce.

At the time of publication, the author was long FB and P.

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