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

Cheers!
SL



Groupon management & the underwriters on the IPO should be ashamed of themselves;
http://www.reuters.com/finance/stocks/GRPN.O/key-developments/article/2523855

Great potential...

Couple of companies I just invested in:
Glu Mobile
Gravity Co.
Vical Incorporated

These have been added to my speculative portfolio - medium to long term holdings. I have no relationship with any of these companies.
*Full-disclosure always!

Enjoy!

Another 200 dma buy

Another 200 day moving average play I did last week.

Great company & great future plus its come back off multi-year highs to hit the 200 day moving average.

Activision (ATVI)


It's down 16% since its highs.


Bought it at 11.66 right at the 200 day moving average last tuesday Nov 22nd.

This is most likely a long term hold which will get to 20 eventually in a few years.
Great future growth investment at a great price!

Enjoy!

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 :

"http://www.reuters.com/video/2011/10/24/groupons-balance-sheet-looks-terrible-an?videoId=223857863
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!

"http://www.washingtonpost.com/business/wadhwa-calls-groupons-planned-ipo-a-scam/2011/10/29/gIQAe0uyQM_video.html 

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.

Cheers.
SWL

Made 10% on my investment in a week - this is how

This was a classic trade in which I made 10% on my investment in a week.


The setup was PAA (Pan American Silver Corp)


If you follow charts you can see PAA has found support at its 200 day moving average for the past few months, this is a strong buy signal when you see this.  So I purchased it the other day when it was at its 200 day moving average this is the exact time and date and price :


2011-10-19, 14:05:12    $27.55 per share


I will most likely sell it tomorrow over $30, I was planning on taking a quick 10% return so I will stick to my plan. (Never get greedy)


PAA hit 30.83 today and settled at 30.20 by the end of the day, if I get 30.30 tomorrow I will have made exactly 10% return since last wednesday the 19th of October.   This is 10% return in 7 days.


If PAA opens up lower I will wait until it comes back to touch the 50 day moving average @ my 30.30 price point which may take another few days.


Although I don't do these trades that often because they have to be almost near perfect setups to execute these short term trades.   

*Disclaimer - Don't try this at home unless you know what you are doing or have lots of experience with buying and selling securities. (Most day traders go bankrupt because the human mind is more susceptible to fear and greed which in the long run will catch up to the undisciplined trader.)

To be successful in the market you have to have plans 

and to stick those plans no matter what.

Word Of The Day:

seigniorage :  the profit taken from the printing of paper money 


It costs the federal reserve (a private bank) 7¢ to print a US $100 bill. 
Cost for the average worker to obtain a $100 bill is 6 hours of labour...


In Canada it cost the Bank of Canada 5¢ on average for every $20 Canadian Bank Note

Apple should buy RIM... & here's why

Apple should buy Research in Motion, the stock has been hammered the past 6 months its down 55% to 12.5 billion market cap, this company use to be over 60 billion back before the bubble burst in 2008! That's a great deal!

 Research in Motion the makers of Blackberry are on fire sale prices when you consider the corporate accounts and patents they have - the exact thing Apple needs to grow their corporate market share with the iPhone. (Why not take over the biggest player in this market?)

Apple could easily buy them up and still have 60 billion or so left over for future endevours. Apple could phase out the Blackberry and take over the BES system and combine it into iPhone system. Let's face it the main profit driver for RIM is the BES system and corporate accounts that are tied with it.

I say offer them a clean 15 billion tomorrow!
Let's go Mr. Cook, make your first big move as head of Apple.