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| | | Is Groupon Finally a Good Buy?
Over the past year, a number of the highest-profile IPOs have crashed and burned. And they've taken a plethora of institutions and legions of retail investors with them.
Are any of these stocks worth buying? What happens to IPOs after they collapse out of the gate?
In many cases, high-profile IPOs that fail from the first day of trading, or shortly thereafter, are branded with the failure stamp. It can take months and sometimes years before these stocks recover. Even when moves higher occur in these stocks, there is little interest by institutions as the previous performance has usually left a very poor taste in investors' mouths.
When we speak with institutions or even retail investors, failed IPOs are treated with scorn, disdain, and derision ... with the exception of value investors seeking a bargain. The thinking is that a given stock is so beaten down that there must be some value and favorable risk profile associated with the company.
To read more click here >> or visit http://www.pennystockjunction.com
When Right is Wrong
Friday was a pretty cool day for us here at Penny Stock Junction. Three of the top four performing stocks on listed exchanges (i.e., non-BB, non-QB, and non-PK) were profiled in these pages during the summer. I had to do a double-take early Friday morning as one of the primary news outlets mentioned one of the companies as being a big mover but had the wrong symbol. I had to look into it to make sure I wasn't seeing things. Sure enough. It was the right company but the wrong symbol.
I had to chuckle as it reminded me of a bad trade made by a colleague of mine in the summer of 1992. A broker in my firm at the time received an unsolicited order to buy 1,000 shares of Cisco Systems (NASDAQ: CSCO), which at that time was a fairly new stock. Unless you were familiar with "cutting edge" technology stocks, you wouldn't have known that it was a becoming a high-flying stock. Unfortunately, this broker, who had already been in the business 30 years by that point, was wholly clueless about the matter.
Instead, he placed an order to buy 1,000 shares of Sysco Corporation (NYSE: SYY), a leading food wholesaler and supplier. Three days later he got an irate call from his retail client demanding to know why he bought 1,000 shares of Sysco instead of Cisco in his account. Cisco had risen a couple of points by then and it was just a hilarious mess.
To read more click here >> or visit http://www.pennystockjunction.com
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