Groupon Stock Holders! Head For the Exits!

In what, I'm sure will be the second to last post I ever make about Groupon, and how much of a dog company I think it is (the last post will be a "I told you so" when Groupon becomes a penny stock), I'd like to show you Groupon stock performance over the past two days.


Pretty shocking stuff. Especially if you own shares in this company!


On Monday, Nov. 21, 2011. The Dow Jones Industrials (DJI) had a bad day dropping 249 points or -2.1% to finish at 11,454. The NASDAQ Composite Index (IXIC) closed 1.92% lower at 2,529.14. On the other hand, Groupon (GRPN) had an even worse day by dropping almost 10% and another nearly 1% after-hours! See chart:

Today, Tuesday Nov. 22, 2011 (USA time) it wasn't as bad as yesterday's market saw the DJI down 53.59 or -0.49% to finish at 11,493.72. The NASDAQ closed 1.86% lower at 2,521. But! Groupon was one of the top three losers for the day dropping a whopping 3.51 or -14.89% to close at nearly their IPO price. The final closing was 20.07.

Head for the life rafts! If anyone knows where or how they can short GRPN shares, please comment and let us all know. Opportunities of a lifetime, like this one, don't come very often.

As I have written over and over before, a business model built on SPAM mail isn't a good business model at all. They should have built a portal. They should have taken Google's $6 billion dollar offer.

I'll make a prediction here: GRPN stock price will be under $5.00 by December 15, 2012 (maybe $1.00?) So if you want to be stupid and "BUY" then wait for their 60% off Groupon share price coupons! (Or, as Karl Denninger says, "There's crazy and then there's really crazy!") 

UPDATE: Zerohedge writes, "Groupoff - Groupon back to IPO price":

As of this moment, everyone who has bought and held GRPN stock since the IPO price is at best flat, and almost certainly at a massive loss, as only a few banks were allotted shares at the $20.00 offering price, which were quickly flipped to subsequent greater fools. As of this moment, GRPN is back to the IPO price or precisely $20.00. We expect once this is taken out for the one way Grouponzi Red Light Special to fair value, somewhere around $0.00, to take a few months at most.

PS: I have made some really good bucks buying and selling stocks over these 35 years... Actually, only three. I've only ever bought three times. I won big three times. Great opportunities only come once every ten years or so (unless you have insider information) one day soon I will write about these exploits. I found these chances of a lifetime just simply from reading the news. You can too. Sometimes things are just painfully obvious. As a loser, Groupon was one of them.

Had I been able to invest huge money instead of my piddling amounts, on the good ones....I might have been rich!

Or as my wife says:

UPDATE 2: Groupon was the #2 biggest drop on the entire NASDAQ today according to Yahoo Finance:

NEW YORK (AP) -- A look at the 10 biggest percentage decliners on Nasdaq at the close of trading:

School Specialty Inc. fell 26.4 percent to $5.17.

Groupon Inc. fell 14.9 percent to $20.07.

First Clover Leaf Financial Corp. fell 11.6 percent to $5.74.

Viasystems Group fell 10.9 percent to $15.77.

ID Systems Inc. fell 9.7 percent to $5.14.

Mackinac Financial Corp. fell 9.6 percent to $5.00.

Technical Communications Corp. fell 9.6 percent to $7.17.

Forbes Energy Services Ltd. fell 9.2 percent to $5.35.

KIT Digital Inc. fell 9.2 percent to $9.52.

Lihua Intl fell 8.8 percent to $5.36.

UPDATE 3: Another from Zerohedge:

Yet another fatal flaw in GRPN's business model is revealed to the sheeple IPO buyers.

Bakery Burned in Groupon Deal for 102000 Cupcakes

‎ - International Business Times

Dancing With the Stars, Spray Tans, Mindless American TV

Every morning, like clockwork, I turn on my computer to do work and to write this blog. Every morning I see something on the top page of Yahoo that just makes me roll my eyes. (Yes, I know everyone uses Google, but I use Yahoo to get the financial and stock market news).


Everyday, at the top of the page, Yahoo has their 5 "hot" stories. These are always incredibly stupid and useless. Usually it is about an unusual football play (when, upon clicking, you see that it is not so unusual at all)... Or it it about some idiocy involving some Hollywood person getting a divorce or the dress s/he is wearing or something else.

Here's what was at the top of Yahoo this morning: $2.5 million dollar bra, Wal-Mart's sales, Golfer gets angry, 10 strange sports venues, Billy Crystal hosts Oscars? Hoo hum...

In a few words, God! American society is stupid! 


You know this stuff is there because Yahoo is "giving people what they want"... There is never any news about anything that actually matters.


But sometimes, even Yahoo can have something so stupid, so asinine that it irritates me to hell. Yesterday had a link to the person who does the tanning for the people on "Dancing With the Stars"! Jesus! I just have to read about that! 


The article is just Hollywood fabulous. Let me quote:


Each season of "Dancing With the Stars" features a revolving line-up of contestants and professional dancers, but one thing remains the same: spray tans are a big part of the show. And that's where Julie Nostrand, the owner of South Seas Skin Care, comes in. All season long, she's spent every Sunday flying from Loveland, Colorado, to Los Angeles, to ensure celebs look luminous in the ballroom and in front of the camera. omg! caught up with Nostrand to find out more about what the stars do to get glam.


Isn't that just ZZZZZZzzzzzzzzz......... Oh, where was I?


No wonder the USA is all f'ed up. Ask Anyone says the average American watches 6.7 hours of TV a day!!!!


Average American watches 6.7 hours a day of TV.


How, in the hell could anyone spend 1/3 of their waking time on TV?


But for more, er, "serious" info let's go to our Neilsen ratings: 

According to the A.C. Nielsen Co., the average American watches more than 4 hours of TV each day (or 28 hours/week, or 2 months of nonstop TV-watching per year). In a 65-year life, that person will have spent 9 years glued to the tube.

The average child will watch 8,000 murders on TV before finishing elementary school. By age eighteen, the average American has seen 200,000 acts of violence on TV, including 40,000 murders. At a meeting in Nashville, TN last July, Dr. John Nelson of the American Medical Association (an endorser of National TV-Turnoff Week) said that if 2,888 out of 3,000 studies show that TV violence is a casual factor in real-life mayhem, "it's a public health problem." The American Psychiatric Association addressed this problem in its endorsement of National TV-Turnoff Week, stating, "We have had a long-standing concern with the impact of television on behavior, especially among children."

Millions of Americans are so hooked on television that they fit the criteria for substance abuse as defined in the official psychiatric manual, according to Rutgers University psychologist and TV-Free America board member Robert Kubey. Heavy TV viewers exhibit five dependency symptoms--two more than necessary to arrive at a clinical diagnosis of substance abuse. These include: 1) using TV as a sedative; 2) indiscriminate viewing; 3) feeling loss of control while viewing; 4) feeling angry with oneself for watching too much; 5) inability to stop watching; and 6) feeling miserable when kept from watching.

OK, 4 hours a day or 6.7 hours a day of watching TV!? Are you kidding me? Don't these people work? How can anyone, in this day and age, have the time to watch that much TV? Why would anyone want to watch that much TV? These people are truly sick, especially when they feel miserable when they cannot watch enough TV!


What's to watch on TV? Nothing good.


I heard from my friend who works at NHK that recent surveys in Japan show that the average Japanese under 30-year-old watches an average 20 minutes of TV per day.


If these statistics are true then the USA is definitely done for. People in the USA no longer read books, they don't know their basic geography. They don't know the difference between John and Yoko staying in bed to protest the war or Lenin doing the same. They think Falafel is a political party in Pakistan and the people in Eye-rack had nooklar weapons.


They think Mexico is in Central America even though Central America doesn't exist... And, they think Napoleon is an ice-cream sundae at 31 Flavors. They couldn't pick out "Grease" on a map of Europe and don't care about "Cheese eating surrender monkeys" anyway. 


As Fred Reed writes in Dark Ages:



The night closes in. Read the surveys of what children know, what students in universities know. Approximately nothing. We have become wanton morons. As the intellectual shadows fall again, as literacy declines and minds grow dim in the new twilight, who will copy the parchments this time?


No longer are we a schooled people. Brash new peasants grin and peck at their iPods. Unknowing, incurious, they gaze at their screens and twiddle, twiddle. They will not preserve the works of five millenia. They cannot. They do not even know why.


Twilight really does come. Sales of books fall. Attention spans shorten. Music gives way to angry urban grunting. The young count on their fingers when they do not have a calculator, know less by the year. We have already seen the frist American generations less educated than their parents. College graduates do not know when World War One happened, or what the Raj was. They have read nothing except the nothing that they read, and little of that. Democracy was an interesting thought.


Ours will be a stranger Dark Age than the old one. Our peasants brush their teeth and wash, imagine themselves of the middle class, but their heads are empty.


We are witnessing the end times for the USA as we've known it for all these years.... It's too bad that, when the drunken giant in the room finally collapses, his fall is going to break everything on everyone else's tables.