I know you guys like the quick profit, but this is a buy and hold. Going to 11 or 12 by weeks end. Lots of shorts got suckered yesterday and can't cover. THI IS NOT A ONE DAY POP.
You got to admit this company is blazing a trail.... 50 % mobile sales .... Just the beginning of a new way of shopping.
Groupon is under valued.
Yes indeed! Going to force all those shorts tomorrow to chase the stock higher. Some kind of Goldman reversal trick. they loaded up today while other sold. Watch.
I have seen this so many times... :)
Friday rally is just beginning... Never mind the dip--it's a BUY!
The down game is over.
If you failed to pickup shares of Groupon today you may have missed the best buying opportunity of the week. Here's what happened.
Insider selling always puts a temporary drag on the share value, we all know that. So, when the broker/MM gets the order to sell insider shares, they try to bid the stock up and short about 1/2 of the shares the insider wants to sell (front running the sale). Now I know you are thinking "CROOKS" AND YOU ARE RIGHT, but SEC allows these crooks to get away with this because it is next to impossible to prove.
The info is secretly shared between firms so that only the retail investor panics and the firms are all in on the shorting. Then the rumor is spread through the market pros to began the downward pressure. Market makers dump the shares insiders shares (using them as a terror tactic) while pulling the bid. Now you have selling pressure, rumors, and finally leaked news to the media. Out comes the official news you read today, adding more down pressure until every frightened rabbit is flushed out of the stock. The brokers all participate in holding the stock down until they cover their "front running short position" and buy long positions as the stock recovers to where it fell from, in this case about $10.65. They will be selling shares all the way up. Finally, some folks will short the rally and be forced to cover much higher, about $10.75.
Fundamentally there is nothing wrong with the stock. The insiders took a little well deserved profit, but they are still holding much more than what they sold. If for one minute the company was truly in trouble they would dump all their shares and GRPN would be $5 bucks. Sorry, not going to happen.
GRPN - is now discounted for an easy run back up!