I expected this (except Monday's spike) if we had low volume. In lieu of any HUGE news, like Mason stepping down, a slew of upgrades or a buyout, I think most of this good, longer term news that will add value to the company, is already baked into the current price. Someone with an agenda might push it a little this way or that, but I think there are enough institutional investors in at the $4-$5 range to keep it from going back to the $3's (they're averaged in at those prices or even higher, and over half of GRPN's shares are owned by institutions, so they're not in a hurry to sell). It, of course, depends on how you're playing this stock, but if you're long, I wouldn't be too concerned about it ... unless you're on margin, which is a sucker's play, but that's just my two cents. I think this stock will move sharply up again once they get some good news. Other than that, when the overall market is flying, investors are too busy putting their money to work in other stocks (this is temporary money), hence the low volume GRPN is experiencing. In short, it'll go back up.
First I will disclose that this is a stock that I day trade. I go both long and short.
I have to say I am surprised that we finished the week so low. I was really happy when we hit 5.50 plus. I expected a pull back too around 5.35. I just did not think that the pull back would take about a hour.
I really thought that 5.21 would be the bottom.
There is always low volume the week before earnings season kicks in.
I think we will continue to have low volume until Jan 29th when Amazon reports earnings. Amazon owns Living Social that competes directly with GRPN. Depending on what they say about Living Social the stock price will move one way or another. Hopefully up!
I went long right before the close Friday at 4.95. Usually with Groupon I am either long or short 2 to 3 thousand shares. Friday I bought only 1000 shares because I am afraid of the possibility of more downside.
If it breaks 4.85 I will cut my loses because I do not want to ride this thing down further.