The moment smart investors (claim to) have been waiting for: Facebook falls below $29

After hitting the market hard, then getting hit hard by the market, Facebook‘s tumultuous IPO has hit a new low, closing at $28.84 yesterday and losing more after hours to rest at $28.69. Some of the “smart money” made claims last week and before that they were going to wait until Facebook went south of $30 before buying. That time has come. Will they buy?

The answer would probably be yes if it weren’t for foolish semi-confirmed reports that Facebook is building a phone. If the rumors turn out to be true, many will run from the risky endeavor which would take the virtual world of social media and add in the rocky world of mobile devices where companies like Dell and HP have failed and where the market seems to be contracting. Even RIM, who specializes in mobile devices, can’t seem to get their act together. How can Facebook?

That’s the question that will determine whether or not buyers are ready to take the plunge or if they’re going to hold out for the stock to go lower. There’s also the distinct possibility that the smart money will run for the hills completely with the Facebook phone prospects.

As IPO goes, this one has been pretty bad. It might not be the worst IPO ever as we thought it would be, but it certainly appears to be close to the title in the early days. When will they rebound? Will they?