Fund Manager Says 'Stay Away' From Facebook

JC Parets is a weekly guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick.

Eagle Bay Capital Founder JC Parets suggested that traders "stay away" from Facebook Inc (NASDAQ: FB) following earnings. The stock, which reported better-than-expected results was trading lower by nearly 3 percent Thursday afternoon.

Parets said that he liked Facebook "for a long time," but his $100 price target was basically reached before earnings, causing the firm to go flat. Facebook's 52-week high is $99.24. The stock recently traded at $94.43.

After your objectives have been achieved, Parets said that it is a "lack of discipline" that will keep you in the stock. "Yeah, I think you should stay away," he reiterated.

Parets later pointed out that the opportunity cost is too high to stay in stocks when objectives were met. The question of whether a stock is going to break down or break out is too hard to answer; instead, he recommended that traders go find different opportunities.