Why Facebook, Inc (NASDAQ:FB) should pay dividends
Tech companies have historically been slow to start paying dividends, and with Facebook having gone public in 2012, a seven-year history without dividends is far from unusual. It usually takes a long time for newly public companies to gain traction in their respective businesses, and in the technology sector, it can take even longer to establish yourself as a major player in the industry.
Facebook, however, is far from a typical company. When it did its IPO, Facebook was already the dominant player in the social media space, and it was already consistently profitable. Although the company did take steps to bolster its position by investing profits back into its business and making key strategic acquisitions, Facebook’s earnings and free cash flow have kept growing over time. As you can see below, net income has jumped tenfold or more in just the past five years, and free cash flow has shown similarly impressive gains.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 160.93.
The projected lower bound is: 139.21.
The projected closing price is: 150.07.
Candlesticks
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 9 white candles and 1 black candles for a net of 8 white candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 white candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
Momentum Indicators
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
Stochastic Oscillator
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 73.9888. This is not an overbought or oversold reading. The last signal was a sell 2 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 63.09. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 38 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 112.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 1 period(s) ago.
MACD
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 11 period(s) ago.
Rex Takasugi – TD Profile
FACEBOOK INC A closed up 1.740 at 150.040. Volume was 19% above average (neutral) and Bollinger Bands were 50% wider than normal.
Open High Low Close Volume___
149.750 152.430 148.550 150.040 31,029,612
Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 145.30 139.76 167.44
Volatility: 23 51 48
Volume: 20,702,436 25,950,158 25,494,186
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
Summary
FACEBOOK INC A is currently 10.4% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of FB.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on FB.O and have had this outlook for the last 9 periods.
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