After witnessing several Facebook friends suggesting other Facebook friends to load up, double down, and otherwise purchase Facebook stock, as well as viewing such advice on forums as Hot Stock Market, I thought it would be helpful to chime in.  Traders and wannabes are clearly unnecessarily losing money.  In the spirit of my previous “Buy Apple?” post, here are a few of the more interesting Facebook related articles as of late:

My Thoughts on the Facebook IPO by W. Scott O’Neil

Avoid These High-Drama Stocks! by Jim Cramer

Stocks Worse Than Facebook (FB) by Bespoke (not very many)

Welcome to the Big Leagues, Facebook! by Bespoke

My Take: Just as before, keep it simple.  Currently, the overall market is in distribution mode so long positions should still be avoided.  Further, as with any IPO and any stock, ignore the hype.   The overall market must begin another uptrend and a stock must form a base, in order to consider buying the stock.  Given Facebook’s especially poor price action, even under those conditions, it would be wise to wait for Facebook’s next earnings report along with the three month lockup period expiration.  For the intermediate term speculators who already purchased the stock, do not change your time frame to that of a long term investor.  If you are not familiar with IPO bases, review the early stage base formation (not the latest correcting action) in recent IPOs KORS, GNC, INVN, TNGO, and SYNC.

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