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And this is what happens when inventors invest in a company they know noting about. This is what happens when you listen to the hype, and the street and NOT do
by crag 15y ago
And this is what happens when inventors invest in a company they know noting about. This is what happens when you listen to the hype, and the street and NOT do your own due diligence. There's a reason why the big banks backed the IPO but didn't take a percentage.
When it all comes down in flames, (I think it's already begun - if you haven't gotten out, get out now) the only saving grace is that the CEO and board will be embattled in court for years. The investors might get a few pennies on the dollar.
- ironchef 15y ago"There's a reason why the big banks backed the IPO but didn't take a percentage." Morgan stanley has 19 mil shares. Goldman has 2 mil shares. They backed the IPO and took a percentage. Am i misunderstanding your statement?
- antr 15y agothey didn't invest cash, they just exercised their green-shoe.
- crag 15y agoExactly. They never invested cash. It's all vapor. In other words, both banks lose nothing except the promise of future profits. Both banks already made their money (and then some) on the IPO and associated fees. Now of course, assuming the banks had no knowledge of Groupon's true financial health; they did nothing illegal. BUT ethically, brokers/traders have a responsibility to informed their clients when it's time to cash out. A lot of people made money off this deal. And lot didn't. But Groupon, if what I'm hearing is true, is committing fraud. I mean, my god, are they cooking the books? Sort of reminds me of Enron. But only time (and many lawsuits later) will tell.