Facebook Inc (NASDAQ:FB) trades flat, Dell Inc (NASDAQ:DELL)

Posted by Nathan Alexander May 15, 2013 0 Comment 2917 views


Facebook Inc (NASDAQ:FB): Tuesday’s trading session saw Facebook Inc (NASDAQ:FB) shares headed 0.93% upward. The opening price of $26.89 touched an intraday high of $27.28 per share before setting down to $27.07. A total of around 24.93 million shares were traded in Tuesday’s trading session. This was below the average volume of 38.33 million, measured over a period of 30 days.

Trading of Facebook Inc (NASDAQ:FB) had been a little more active than usual. Calls received more than double action of puts. The 31 June call is undoubtedly the most-exchanged option. This has seen over 13,500 contracts being traded. Of these, 5,000 were derived from a single block trade which took place just under the ask price. The increase in implied volatility that has resulted is an indication that these particular positions were bought to open.

In short, Facebook Inc still has a long sprint to make in order to finish in the money for the aggressive call buyers. However, on the charts, the shares have added-on almost 54% from the low of $17.55 that they stood at in early September. From a contrarian point of view, there is undoubtedly scope for future upgrades. These, to boost the equity.  This will especially be relevant if there is a confirmation of the acquisition of GPS enterprise Waze.

Dell Inc (NASDAQ:DELL): Tuesday’s trading session saw Dell Inc (NASDAQ:DELL) shares headed 0.37% downward. The opening price of $13.48 touched an intraday high of $13.51 per share before settling down to $13.47. A total of around 33.79 million shares exchanged hands in the Tuesday trading session, which stood above the average volume of 23.19 million, measured over a period of 30 days.

Dell shares dropped soon after the personal computer company asked Carl Icahn, the activist investor and Southeastern Asset Management Inc, to provide it with additional information about the alternative takeover proposal that has been put forth by Icahn. Just last week, Icahn had put forth a proposal that would give Dell Inc (NASDAQ:DELL)’s shareholders the option to retain a holding stock in the company. Additionally, they would also take $12 per share in stock and cash. The company has said it is not positive about whether Ichan’s offer is actually an acquisition proposal or merely an alternative to the possibility that the $24.4 billion deal to sell the company to Michael Dell and Silver Lake Partners and company, will not be approved.


About Nathan Alexander

Nathan Alexander holds bachelor’s degrees in Journalism and European Studies from Boston University. Nathan reports round up the day’s business and financial market news and include keynote interviews with major business players and updates on Asian, European and US stock markets. He has interviewed heads of leading European banking institutions such as European Central Bank President Jean-Claude Trichet and HSBC Chairman Stephen Green, and CEOs from the business world including Microsoft founder Bill Gates, Virgin Chairman Sir Richard Branson and former Porsche President and CEO Dr Wendelin Wiedeking.

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