Saturday, November 5, 2011

Investment advice on Groupon's new stock offering

I've been posting about Groupon on my Facebook page for a few months now.

Basically it's not a good investment at this time, I predicted it would pop about 20-30% on its IPO yesterday on my Facebook page :

More bad news for Groupon stock, but I'm sure it will go way up 20-30% tomorrow when it debuts regardless of how horrible its balance sheet is...  (Posted this November 3rd at 8:45pm)"

The IPO came out on friday and what do you know Groupon popped & closed up 30%!
Can't get a much closer prediction than that!

exactly what I said a few months back! Don't touch this stock after the ipo. I will be shorting it after the original pop. Don't get left holding the bag, use a professional advisor  (Posted this October 29 at 9:52am)" 

With the 30% pop today this puts Groupon's value at something close to 15 billion dollars!   This is outrageous as Groupon has not even made a dime in profit yet.  But its being valued more than Research in Motion and almost the same price as Yahoo??   Or double the value of Tim Hortons in the states?  Or how about the same value as Adobe?   Complete nonsense.   I'm getting sick of the fraud on wall street/banks these days but this creates a opportunity to make money as the price is way overvalued at this point.

I would definitely stay away from this company until they are at least making a decent profit and get out of debt and also with a market cap of around 2-3 billion then I would take a serious look at putting my money into it.

Also if you know how to short stocks (not for the amateur)  I would wait to see if we go make another run for $30 per share and double top up there and safe to hold a short sale up at that range, even now you could short if you are willing to hold onto a 5 dollar run up on it.