Back into this Social Media Giant — and Locking in Double-Digit Percentage Gains

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world.

One of the current favorites of the Alpha Algorithm is social media giant Facebook, Inc. (FB), a stock that you already have held and were stopped out of on Sept. 8 at $129.90 for a 10.05% gain.

I am recommending that you re-enter this position.

Founded in 2004 and headquartered in Menlo Park, California, Facebook, Inc. operates the world’s largest social networking site, with over one billion daily active users. Its solutions include Instagram, Messenger, WhatsApp Messenger and Oculus virtual reality technology.


Facebook vs. the S&P 500 YTD

11 Top Investment Strategies Betting on Facebook, Inc. (FB)

1. Hedge Fund Alpha

Based on publicly available disclosures, successful hedge fund managers are investing in the stock.

2. Hedge Fund Gurus

The stock is one of the top U.S.-listed equity positions reported on Form 13F by select hedge funds with concentrated top holdings.

3. Goldman Sachs’ Active Beta

The stock is selected according to four factors — value, quality, momentum and low volatility. These, in turn, are based on criteria including book value, sales and cash flow scaled by share price, profit/assets or return on equity (ROE), risk-adjusted returns and daily standard deviation of returns.

4. Value Tilt

Selected using a multi-factor modeling approach, this is a value stock designed to enhance portfolio risk/return characteristics.

5. IPO Index

Its strategy tracks a market-cap-weighted index of the 100 largest U.S. initial public offerings (IPOs) over the first 1,000 trading days of each stock. Stocks must pass additional quantitative screens as well.

6. Momentum Factor

The stock also is one of the top 120 large- and mid-cap U.S. stocks exhibiting relatively higher price momentum, as measured by a specific factor which has historically driven a significant part of companies’ risk and return.

Exclusive  Underweight Stocks, Overweight Bonds, T. Rowe Price Recommends

7. Large-Cap Growth

The stock is among the top 50 large-capitalization U.S. growth stocks generated through a rigorous 10-factor fundamental screening process.

8. Exponential Technologies

The stock is part of a strategy that invests in nine different fields deemed to be high-growth “exponential technologies”: big data and analytics, nanotechnology, medicine, networks, energy and environmental systems, robotics, 3-D printing, bioinformatics and financial services.

9. IBD Top 50

A top stock based on Investor’s Business Daily’s proprietary trading formula to identify 50 stocks that meet one of seven different catalysts. The “CAN SLIM” strategy identifies companies with either fundamental (improving earnings, new product) or technical (upward stock move on strong volume) catalysts.

10. Pure Growth

The company is part of a strategy that selects companies from the S&P 500 Index, based on three growth factors: current internal growth rate, historical EPS growth and historical sales/share growth.

11. Knowledge Leaders

The stock benefits from the “knowledge effect” — the tendency of innovative companies to outperform, and is selected by adjusting historical financial statements to obtain its level of “knowledge capital.”


Buy Facebook, Inc. (FB) at market today. Place your initial stop at $122.

Portfolio Update

Raise your stop in Amazon (AMZN) to $786.50 to lock in at least a 10% gain in the position.


Nicholas Vardy

Nicholas A. Vardy

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