GROUPON INSIDER SELLING

 

Groupon Insider Selling Has Investors Watching


groupon insider selling GROUPON INSIDER SELLINGNot so long ago, before smart money got wind of the planned Groupon insider selling, this brand name IPO had the potential to be one of the hottest, most sought after deals of the year. Then IPO mavens and institutions started looking at the numbers, which were not very impressive. Groupon’s losses basically overshadowed their impressive revenue growth. In addition private equity IPO’s have had a mixed track record because of smart money selling to retail investors, and while Groupon Insider Selling isn’t exactly in that category, IPO investors have generally stay away from deals where IPO proceeds go to management, as opposed to companies that actually use the raise for future growth and operations.

However, the tide has seemed to change, The amount of stock being sold has been scaled back drastically as the deal size has become considerably smaller. In other words the Groupon insider selling might become alsmost a non event.

It’s no secret that hedge funds and institution often go long large cap NASDAQ names, when sexy IPO‘s trade at heavy premiums. This effect often creates short term rallies and trickles down to increase the confidence of retail investors.

Groupon Insider Selling Has Traders Worried


Is this the deal that can potentially turn the tide for the market ? Or will the bad taste from the formerly planned Groupon insider selling turn the smart money off ?

Well we think it’s unfair to put so much stock in the performance of one deal. Early reads are showing that the deal could do exceptionally well if the market remains stable and Europe doesn’t implode. But if our recent decline continues this deal could be allocated to retail accounts in a way that nobody could have imagined only a few months back. Despite the scaled down size of the offering.

So for now it might best just to use the broader markets as a gauge for the interest in Groupon. The decreased Groupon insider selling is a start, but we are not out of the woods just yet.

See Related Article Groupon IPO

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GROUPON IPO

 

GROUPON IPO Back For Investors

 
groupon ipo GROUPON IPOThe much sought after Groupon IPO seems to be on the calendar again. Unfortunately for Groupon, they were a little late to the party. Speculative internet companies like Pandora (P:NYSE) and Renren (RENN:NASDAQ) took advantage of the broader market conditions and a roaring IPO market and captured a first day valuation that is regretted by many investors who went long the respective names.
 
But that was the market back then, and we all have seen how quickly conditions change. During our last phase of IPO mania, Groupon had a valuation that was much larger than many of the recent past offerings. IPO services still expected shares of Groupon to be heavily oversubscribed with a sizable first tick premium that is usually only seen in smaller deals.
 
Now how will a Groupon IPO play out now ? Well that remains to be seen, especially since social media icon companies like Facebook and Zynga have pushed back their plans to go public in the near term. However, if Europe doesn’t implode, it’s probably still reasonable to say that a Groupon IPO could be at least 10 to 20x oversubscribed because of it’s name brand and impressive roster of VC investors.
 

GROUPON IPO Has Investors Busy

 
Just keep one thing in mind when the Groupon IPO trades. Shorts swarmed on LinkedIn (LNKD:NASDAQ) which is obviously a step up in quality from some of the hotter IPO’s that have traded in the past two quarters. So if Groupon trades in October or November as some are estimate, don’t get too excited for a monster aftermarket trade. Based on the recent trend, the talking heads will probably be constantly discussing the date when shares of Groupon will be available to borrow to short. They did it with LinkedIn and within 5 days, LNKD dropped more than 50 points from it’s first day high.
 
So for now, take the Groupon IPO hype with a grain of salt if you are expecting to only play it on an aftermarket basis.

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Groupon IPO Could Impact the Price of CXLT ?

Groupon IPO


groupon ipo Groupon IPO Could Impact the Price of CXLT ?One of the things that the stock market has taught us, is that one company can influence an entire sector. When one company is so strong, or weak for that matter, it can either create rising stocks in a particular group, or a bunch of dogs.

Well, in this case, it’s probably fairly safe to say that there will be a ton of hype and anticipation of the Groupon IPO. Although no date is set, valuations have ranged between $15 and $25 billion, according to news sources.

net savings link ipo Groupon IPO Could Impact the Price of CXLT ?Both Groupon and Net Savings Link (CXLT:OTC.BB) both operate collective buying websites. And yes, there are a ton of these companies popping up. However, there is still an opportunity for a sympathy trade in this hot penny stock if the anticipation in the Groupon offering continues to grow. Remember, Groupon turned down a bid from Google (GOOG:NASDAQ) for $6 billion in December. By no means am I trying to compare the business model of CXLT ot Groupon’s, but with that being said, there could be an opportunity for a trade in a low priced penny stock.

Some other recent examples of larger stocks creating other rising stocks, are Molycorp (MCP:NYSE) and General Motors (GM:NYSE). I can’t tell you how many times I heard people telling about some previously illiquid rare earth penny stock that made a huge percentage move on the back of Molycorp’s furious run into the 50′s. On a more conservative note, Ford Motor Company (F:NYSE) made a decent percentage move based it’s comparison to General Motors, but it was right before GM did it’s IPO. Many people thought F was cheap in comparison to GM. And guess what ? Ford went higher.

So take a look at CXLT in the next few months. The stock is extremley liquid, and despite it dropping sharply from it’s high, CXLT could provide at least an opportunity for a quick penny stock scalp. So add it to your list of stocks and research it further, especially the technicals.

Also follow Groupon’s news flow. I am pretty sure that CNBC and Bloomberg will provide plenty of background the closer we get to the IPO. And if the story keeps getting better, you could see CXLT return to it’s super hot penny stock status.

Stay tuned for more penny stock alerts, IPO market news, and our weekly stock market report.


 

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