5 ms·

Cue for dozens of Fortune, Newsweek et al articles proclaiming the new bubble. If everyone's so confident in their assertion, go short that stock. Groupon will

Cue for dozens of Fortune, Newsweek et al articles proclaiming the new bubble. If everyone's so confident in their assertion, go short that stock. Groupon will grow like hell until there are finally no new deals to lure with left and the 'extreme couponing' lifestyle has been grinded to death (regular couponing will have a place like it always had). The problem with extreme valuations/bubbles is not so much to recognize them, it's to pinpoint when they will burst.

deleted 15y ago
[deleted]
fleitz 15y ago
Yeah, when it bursts short it all the way to the bottom, hopefully panic selling ensues and you can pick it up a firesales prices at the bottom. Just saw citigroup at $40 today and am kicking myself for not having the cajones to pick it up at $2. Hindsight is 20/20 though and I know I liked it at $18 as well. Looks like I'm being downvoted, I guess the CEO of overture reads HN.
- jsm386 15y ago
  1 for 10 reverse split...
  - fleitz 15y ago
    Ahh ok, I was wondering how the heck it recovered. I'm glad I didn't pick it up then. I haven't followed the finance sector for about a year.
    - bcrescimanno 15y ago
      Why glad? a 10-for-1 reverse split means that the stock is still double it's $2 price point. Doubling your money in a year or two isn't bad at all.
      - fleitz 15y ago
        I could have also picked it up at $18 (pre-reverse split)
        bcrescimanno 15y ago
        Well yeah; that would have sucked. :P
  - lsc 15y ago
    I always find it weird that retail investors speak of share price when that number is so obviously easy to game. Seems to me like it'd be better to think of it in terms of percentage of the company than in numbers of shares.
    - mcphilip 15y ago
      You're right about that number being so obviously easy to game, but share price isn't completely irrelevant since many mutual funds won't hold shares with a price < $5 [1]. Also, share prices < $1 can lead to delisting from exchanges such as NYSE or Nasdaq [2] [1]http://www.cfo.com/article.cfm/3011203?f=related http://www.cfo.com/article.cfm/3011203?f=related [2]http://www.usatoday.com/money/perfi/columnist/krantz/2009-01-12-delisting-stocks_N.htm http://www.usatoday.com/money/perfi/columnist/krantz/2009-01...
      - lsc 15y ago
        right, but a company that is worth something is going to do a reverse split when it starts trading in the $5-$10/share range. Share price is technical arcana, something the accountants should worry about. Personally, I'd compare letting the stock price fall below $5 to filing your required government regulation paperwork late. If it happens often, there is something wrong, sure, but it's something that can be fixed by firing a couple of paper pushers; it doesn't indicate a fundamental weakness in the company's business.

deleted 15y ago

[deleted]

fleitz 15y ago

Yeah, when it bursts short it all the way to the bottom, hopefully panic selling ensues and you can pick it up a firesales prices at the bottom. Just saw citigroup at $40 today and am kicking myself for not having the cajones to pick it up at $2. Hindsight is 20/20 though and I know I liked it at $18 as well. Looks like I'm being downvoted, I guess the CEO of overture reads HN.

jsm386 15y ago
1 for 10 reverse split...
- fleitz 15y ago
  Ahh ok, I was wondering how the heck it recovered. I'm glad I didn't pick it up then. I haven't followed the finance sector for about a year.
  - bcrescimanno 15y ago
    Why glad? a 10-for-1 reverse split means that the stock is still double it's $2 price point. Doubling your money in a year or two isn't bad at all.
    - fleitz 15y ago
      I could have also picked it up at $18 (pre-reverse split)
      - bcrescimanno 15y ago
        Well yeah; that would have sucked. :P
- lsc 15y ago
  I always find it weird that retail investors speak of share price when that number is so obviously easy to game. Seems to me like it'd be better to think of it in terms of percentage of the company than in numbers of shares.
  - mcphilip 15y ago
    You're right about that number being so obviously easy to game, but share price isn't completely irrelevant since many mutual funds won't hold shares with a price < $5 [1]. Also, share prices < $1 can lead to delisting from exchanges such as NYSE or Nasdaq [2] [1]http://www.cfo.com/article.cfm/3011203?f=related http://www.cfo.com/article.cfm/3011203?f=related [2]http://www.usatoday.com/money/perfi/columnist/krantz/2009-01-12-delisting-stocks_N.htm http://www.usatoday.com/money/perfi/columnist/krantz/2009-01...
    - lsc 15y ago
      right, but a company that is worth something is going to do a reverse split when it starts trading in the $5-$10/share range. Share price is technical arcana, something the accountants should worry about. Personally, I'd compare letting the stock price fall below $5 to filing your required government regulation paperwork late. If it happens often, there is something wrong, sure, but it's something that can be fixed by firing a couple of paper pushers; it doesn't indicate a fundamental weakness in the company's business.