Friday, April 20, 2012

Groupon Cash Cow - TO THE DOWNSIDE

Ok I don't want to say I told you so but this was nothing less than a massive winner!

Remember back when Groupon stock offering came out I said they were WAYYYYY overvalued, well the stock hit $31 dollars a share back when the IPO came out and now we are down to 11 bucks!

11 dollars!  Unbelievable, wall street cronies have done it again, thats a 70% reduction in investment since the top near the IPO in a matter of months!  I still think Groupon is overvalued even at 11 bucks a share,  I think it will eventually go down to $5 dollars a share, so your still looking at a 50% move from here on the downside.

I have another big bubblicious stock for you: PRICELINE.  This was a major dot com bubble stock back in the day and went to $1000 a share and then went down to $7 bucks!  from $1000 a share!  Well now its rebounded back to over $700!  I'm pretty sure this is a pumped up investment firm stock, the numbers just don't seem right, I can imagine we will see some kind of accounting discrepancy in the future,  I'm expecting this stock to go back down and touch the 200 day  moving average eventually which is around the $275 mark - so thats a 65% reduction from here.

Be careful with these MASSIVE wall street pump and dump schemes, Groupon was the biggest I've seen in awhile, Facebook is another one because they have valued it so extremely insanely high to begin with, thats why they always come crashing down as the big investment firms like JPMorgan, GoldmanSachs, Morgan Stanley cash out all their pre-IPO shares (pump & dump scheme).

Google was priced right when their IPO came out, and thats why it was such a good investment


Groupon management & the underwriters on the IPO should be ashamed of themselves;