In the past few days i was talking with my friend about Groupon (NASDAQ:GRPN)
My friend was buy 2,000 shares of GRPN for a long term around 5.50$ per share.
From him opinion, GRPN is a "Value Investment" and he expect to see GRPN at 7$ - 8$ within 1 year.
We had an argument about GRPN potential...
I want to share my opinion with you...
GRPN is NO "Value Investment" at least at this time...
Who is buy GRPN at this time, for a long term (3-12-24 months...) he is really speculative trader! This is the true.
The real "value investors" are no interesting at Groupon until will see Groupon with real stick stake in its markets.
Just day traders are current players with GRPN.
And they are really trader the stock with caution, they are leave the trade more fast, and don't take risk for "breakup".
Because of this trading type, we see the GRPN chart with many pattern that looks like before breakup but actually they are breakdown (The day traders are not continue to hold the stock).
THE GOOD NEWS:
Groupon show first option to stick stake in its markets -
This two points can start make the magic and weak-up some value investors...
WHEN TO BUY GROUPON ?
LONG TERM INVESTORS?
(For a long term, with 20-40% profit potential)
our single to enter will be start when we will see the stock hold any price range, not hit new lows at 1-3 months at last, and also hold margin of 20% from the last low.
DAY TRADERS? (Beginners)
About the signal for entering, this need to check each time from begging.
My tip for you is when to sell -
Sell when stock are close to breakup. Don't wait for breakup because this stock will make a breakup only when will be also crating a single for a long term investor too..
And about my friend, and other traders with the same opinion -
I hope you understand now that you are very speculative investor.
50 % - 50 %
Good luck to you too :)
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in GRPN over the next 72 hours.