Stock Market

[mac5155]

groupon ipo @ $20 a share? I'd say it's worth it.

how are you valuing that? by share price alone? careful.

According to quick research they'd be worth what, $12 billion? There's also got to be a high demand for the shares.

[ExPatriatePen]

groupon ipo @ $20 a share? I'd say it's worth it.

how are you valuing that? by share price alone? careful.

According to quick research they'd be worth what, $12 billion? There's also got to be a high demand for the shares.

How are you valuing them? By multiplying the share price times the number of shares?

I wouldn't do that. That's only a calculation on current market value. Sure they may get a "pop" on the IPO, but you need to look at the fundamentals to determine where they'll be a year or more from now.

[slappybrown]

groupon ipo @ $20 a share? I'd say it's worth it.

how are you valuing that? by share price alone? careful.

According to quick research they'd be worth what, $12 billion? There's also got to be a high demand for the shares.

I believe they cut the IPO from what they initially had planned because of weak demand.

[ExPatriatePen]

groupon ipo @ $20 a share? I'd say it's worth it.

how are you valuing that? by share price alone? careful.

According to quick research they'd be worth what, $12 billion? There's also got to be a high demand for the shares.

I believe they cut the IPO from what they initially had planned because of weak demand.

Enough Said

[mac5155]

http://www.businessweek.com/news/2011-1 ... hares.html" onclick="window.open(this.href);return false;

although other sites are saying they are over-hyped.

[Troy Loney]

Pass...do they have a new business model? I'm not sure if there's much value in that with google entering the market.

[mac5155]

Pass...do they have a new business model? I'm not sure if there's much value in that with google entering the market.

I think past ventures w/ Google have proven that they aren't always good at entering a different market. i.e. Google buzz..

BUT i've been getting GroupOns for about a year now. I've bought about 2 of them. I've bought like 4 Google Offers in the past 2 months. They're mostly better deals.

[ExPatriatePen]

Pass...do they have a new business model? I'm not sure if there's much value in that with google entering the market.

I think past ventures w/ Google have proven that they aren't always good at entering a different market. i.e. Google buzz..

BUT i've been getting GroupOns for about a year now. I've bought about 2 of them. I've bought like 4 Google Offers in the past 2 months. They're mostly better deals.

You're valuing the company based on the product?

Pets.com had a great product... but the company went bankrupt because they didn't have a sustainable business model. (That's only one of dozens of examples I could cite you)

[columbia]

A lot of business have had to flee from Groupon, because they have taken a bath on the discounts.
Business was *too* good through that outlet.

[Tomas]

The American in charge of Greece (yes, Papandreou is "yours" - born and raised in Minneapolis until he returned to Greece at the age of 22 (I believe); apparently speaks with a strong Minnesotan accent) just won the confidence vote 153:145...

[bhaw]

A lot of business have had to flee from Groupon, because they have taken a bath on the discounts.
Business was *too* good through that outlet.

It's why Groupon is doomed, eventually. Their model is based on encouraging businesses to use a loss leader to attract "new" customers. Then they take a huge chunk of that revenue (30-50%). Then they take 90 days to pay the business. In the meantime, the business gets inundated with customers who want the discount and they have to pay for the product the new customers are busying. As it turns out, none of those customers want to use the business regularly, they just want the discount.

/terrible business model for the companies who advertise on Groupon

Groupon is actually dooming some businesses. They are having to fund the losses from past Groupons with new Groupons. Eventually they fail. The word is out that it's not the best thing since sliced bread for many companies.

[bhaw]

Also, the daily deals market is pretty slim:

1. Groupon
2. Living Social

#3 just went out of business, I believe (Buywithme.com) - funny story... they went out of business during the interview process with me I was wondering why I didn't hear anything back after my final interview with the SVP of Sales.

It's not going to be a long living industry when the players below the top 2 are going out of business and #1 is getting a wrap for killing businesses. I would stay away from their stock. Just my opinion though.

[Tomas]

Incredibly cheap Corporate Finance textbook (736 pages): $60 at Amazon.com, FREE online (for computers and IPad):
http://book.ivo-welch.info/ed2/" onclick="window.open(this.href);return false;

Welch is a real deal, BTW (UCLA finance professor): http://www.anderson.ucla.edu/x37083.xml" onclick="window.open(this.href);return false;

My first impression: Pretty much as good as any other textbook out there - and considerably cheaper. The textbook also has free "companion" chapters for more advanced corporate topics (international, options, governance, M&A,...): http://book.ivo-welch.info/companion/" onclick="window.open(this.href);return false;

[ExPatriatePen]

Incredibly cheap Corporate Finance textbook (736 pages): $60 at Amazon.com, FREE online (for computers and IPad):
http://book.ivo-welch.info/ed2/" onclick="window.open(this.href);return false;

Welch is a real deal, BTW (UCLA finance professor): http://www.anderson.ucla.edu/x37083.xml" onclick="window.open(this.href);return false;

My first impression: Pretty much as good as any other textbook out there - and considerably cheaper. The textbook also has free "companion" chapters for more advanced corporate topics (international, options, governance, M&A,...): http://book.ivo-welch.info/companion/" onclick="window.open(this.href);return false;

Awesome Tomas, thanks.

Do you have any suggestions on a good book about bonds and trading in the bond market? I'm thinking that there might be some really good opportunities going short bonds here over the next couple pf years as all of this QE tender begins to ignite if we ever get a recovery.

[Tomas]

Incredibly cheap Corporate Finance textbook (736 pages): $60 at Amazon.com, FREE online (for computers and IPad):
http://book.ivo-welch.info/ed2/" onclick="window.open(this.href);return false;

Welch is a real deal, BTW (UCLA finance professor): http://www.anderson.ucla.edu/x37083.xml" onclick="window.open(this.href);return false;

My first impression: Pretty much as good as any other textbook out there - and considerably cheaper. The textbook also has free "companion" chapters for more advanced corporate topics (international, options, governance, M&A,...): http://book.ivo-welch.info/companion/" onclick="window.open(this.href);return false;

Awesome Tomas, thanks.

Do you have any suggestions on a good book about bonds and trading in the bond market? I'm thinking that there might be some really good opportunities going short bonds here over the next couple pf years as all of this QE tender begins to ignite if we ever get a recovery.

I don't teach fixed income investment (actually, any investment - just various levels of Corporate Finance and Valuation classes). But I'll ask around.

[mac5155]

PepsiCo has been looking good recently in my semi-educated opinion.

[ExPatriatePen]

PepsiCo has been looking good recently in my semi-educated opinion.

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[mac5155]

I also think FedEx and/or UPS may be good buys now. They are both expecting huge increases in holiday shipping and FedEx seems very undervalued at ~$82 a share right now. Just a few weeks ago it was at ~$70-something but 3 months ago it was near $100. With a lot more retail going online, they may be worth a look.

[slappybrown]

I also think FedEx and/or UPS may be good buys now. They are both expecting huge increases in holiday shipping and FedEx seems very undervalued at ~$82 a share right now. Just a few weeks ago it was at ~$70-something but 3 months ago it was near $100. With a lot more retail going online, they may be worth a look.

Im not saying that Fedex/UPS aren't good buys, but nearly every stock, particularly in the 50 plus range "looks" undervalued relative to earlier in the year. Just depends on whether you think the market is oversold, presently stagnant, ripe for a comeback in 2012, or some combination. So basically, I know nothing.

[KennyTheKangaroo]

PepsiCo has been looking good recently in my semi-educated opinion.

if anyone is interested in investing in a pop/drink company, take a look at national beverage company (Ticker symbol=fizz). their most notable product is faygo.

in the past few years fizz has been very generous with returning cash to shareholders, although there probably wont be a juicy dividend this year. but financially, FIZZ is built like a brick house. one of kenny the kangaroos better investments.

[Fire0nice228]

What do you think of copper long term? SCCO?

[itissteeltime]

Looks like the Italian PM is about to resign. Should this send the US dollar upward?

[columbia]

Looks like the Italian PM is about to resign. Should this send the US dollar upward?

bunga bunga

[ExPatriatePen]

What do you think of copper long term? SCCO?

Copper is about the best "pure play" on the world economy that's available.

The question "what do you think of copper" might just as well be phrased " what do your ink of the global economy".

[ExPatriatePen]

Looks like the Italian PM is about to resign. Should this send the US dollar upward?

bunga bunga

He has resigned according to CNBC.

The market hates uncertainty.