Groupon has gone gangbusters. -- anti. -- Susan started trading on the NASDAQ joining us now to discuss Groupon IPO is -- -- from the street -- ever thanks for being with us on our problems so -- --... See More
Groupon has gone gangbusters. -- anti. -- Susan started trading on the NASDAQ joining us now to discuss Groupon IPO is -- -- from the street -- ever thanks for being with us on our problems so -- -- -- the numbers here first the stock would be offered -- 1618 dollars a share when time -- it was issued at twenty dollars a share. And that the first few minutes of trading shots in nearly thirty dollars a share what is behind -- -- Well that is typical behavior for a -- thought it doesn't really hard to write that to know where to put the value of the thought though they'd. Get a good idea based on the the man from their institutional clients and then. They put out there on the market the market determines what -- it's gonna -- felt the first day it may shoot up or it may fall. Down OK let's permanent anchor -- share price returns to twenty dollars that was the company's value at twelve point seven billion dollars. Does seem a little high for a company that's never turn a profit are actually in -- just. Right in fact that is correct they are not the best company as far as the metric when you look at it. And this number puts them at the second largest Internet company behind Google it makes absolutely no sense whatsoever. Is that just the bottom line is no reasoning behind -- is irrational exuberance. Well there are a lot of buzz behind -- stock and that's really what got things going with all the buzz about group fine and after remember originally -- valuation was twice what this was going to be -- it's come down it's been cut in half. And I think as you go forward real investors are NN be a little bit less. Exuberant -- the -- OK let's get into that warrant a minute but first -- Groupon sold. Only 6% of the company and is offering why they come forward with more share. That's right and some say you know the only sell that much are you really a public company if only a smaller percentage is actually in public and my opinion is -- a lot of these insiders a lot of those original investors. Are holding on to their thought because -- just gonna -- outlets that stuck at the public ground OK compare this to another IPO the easiest one is probably -- and that was offered at 45 dollars back in May. And soared to almost a 123 dollars on its opening day it's now at about eighty dollars after several months. Would you expect a similar price trend with Groupon. I think he will I think you'll see -- this same kind of reaction. Again with. -- and they didn't say that they were not going to be profitable except that from the get go however. The stock has dropped considerably since it first came not in fact if you just look at just pure performance of the stock is down 7% since it came out. Let's not been performing very well it just had -- quarter and it reported losses though you starting to get a little tired of paying high prices for companies that. Supposedly. It will make money in the future. People who might be sitting at Holland thinking about buying this stock based on your experience with IPOs is now time to act. Well here's what I look at when I look at that company in the very beginning of its filing with the SEC. The head of the company's that we may have moments of brilliance but. We have made may have moments of sheer stupidity I don't I -- put my money with a company that says hey we -- -- something really stupid. While they admit that our right to abortion are from the street -- common interest is -- contained -- watch thanks for your expertise.
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