Groupon update

Posted on by The INO.com Team

One stock to keep an eye on today is a Groupon Inc. (NASDAQ:GRPN). I created a special report on this stock two days ago and you can read that report right here.

While Groupon beat earnings on the top line, they more or less admitted that their business plan is not sustainable. The problem for Groupon is that merchants/companies are not renewing to continue their service because it just doesn't work for businesses.

Sooner or later, Groupon Inc. (NASDAQ:GRPN) will run out of merchants to sign up and promote. With this stock down over 12% in the pre-market, I expect Groupon to be under pressure today.

There is one more clue that you may want to look at to see just how unfocused this company really is. Check out this major Groupon PR blunder for Presidents' Day.

Please feel free to leave a comment on your thoughts on this stock.

All the best,
Adam Hewison
President, INO.com
Co-Creator, MarketClub

How You Can Take Your Trading To an Olympic Level

Posted on by admin

The average trader always has money on the mind.  Money,money, money.  A couple more points.  A sexy balance sheet.

That's also why they're average. The best of the best aren’t thinking about money at all. Let's use an analogy to prove this point.

What happens to an Olympian who's always looking up at the scoreboard or clock? They lose the puck, fall behind another skier, or miss their landing. What happens to the Olympian who is focused on improving their game, making the right pass, hitting the right turn, and nailing their landing? They win.

This is no different than trading. Money is the byproduct. We all know that. But focusing on the byproduct doesn't get you any closer to it. To take your trading to an Olympian level, you must remove yourself from the bottom line and focus on what makes you better. If you can't do that, go liquidate your brokerage account. You shouldn’t be trading. Continue reading "How You Can Take Your Trading To an Olympic Level" →

Your thoughts on FaceBook buying WhatsApp?

Posted on by The INO.com Team

The big news today, at least in the internet/financial world, is FaceBook’s purchase of WhatsApp, an instant messaging service. WhatsApp has 55 employees, 450 million users and was started a little over 4 years ago. It also makes very little money. The price tag for WhatsApp is rumored to be $19 billion dollars, $4 billion in cash and the balance in FaceBook stock.

In essence, FaceBook Inc. (NASDAQ:FB) is buying 450 million eyeballs to make a major move into the mobile space. Do you think it was a mistake to buy WhatsApp and what effect do you think this acquisition will have on the stock of FaceBook?

Do you think FaceBook's stock will go up or down from here?

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Thanks for your viewpoint on FaceBook. Please feel free to add a comment below.

The INO.com Team

Currency Chart of The Week - Japanese Yen

Posted on by The INO.com Team

Each Week Longleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

In the March 2014 Japanese Yen (CME:6J.H14.E), a recovery from the recent two day sell off has been underway this morning. Uncertainty on the state of the US economy has provided support for the Yen. In the event of the stock market undergoing a profit-taking correction after 11 straight sessions in the green, we would expect a short term boost in the Yen.

The March Japanese Yen has recently corrected after posting a recent swing high of 9.927 on February 4, 2014. Since correcting, the 20 Day Moving Average has acted as support on multiple occasions, and we anticipate it will continue to do so in the near term.

Using the 20 day moving average as a support level, I expect another leg up in the Japanese Yen if we break the high in yesterday’s session of 9.829 today. Along with a strong relative strength index reading, the near-term upside target for this move would be the swing high of 9.927. In this instance, it would be fitting to roll stop orders behind the position, as the 200 day moving average sits just below the swing high and may act as resistance. Continue reading "Currency Chart of The Week - Japanese Yen" →

Will Groupon, Inc. (NASDAQ:GRPN) Miss Earnings?

Posted on by The INO.com Team

Today, I am going to analyze the stock of Groupon, Inc. (NASDAQ:GRPN).

I am sure, like me, you've received emails from Groupon offering all kinds of special deals on meals, massages, auto detailing and so forth. It seems they come all the time and to be truthful, I have yet to take advantage of any of the deals Groupon offers.

I was curious and decided to look into the world of special offers from the other side of the table, so to speak. I checked with some of the merchants who are offering these deals or who have offered these deals in the past and asked if they would do it again. It seems that the experience, while novel at first, was not necessarily a positive one for all merchants. Many merchants found that people would respond to their offer, come once, and not return. So where is the upside if you're a merchant and you're selling at perhaps a breakeven price or loss? What's in it for them? Yes, you can chalk it up to advertising, but like any advertising if it doesn’t work for you, don’t go and do it again and again. I'm not sure if the Groupon model can continue if merchants begin looking at the numbers and deciding that this approach is not such a great deal anymore for them.

Let's take a look at the stock itself and see what it has been doing over the last couple of years. After dropping down to a low of around $3 in November of 2012, the stock moved steadily higher in a very optimistic and bullish climate in 2013. After hitting a high of just over $12.50 last September, the stock once again dropped below $9 before recovering to around $12 a share. Continue reading "Will Groupon, Inc. (NASDAQ:GRPN) Miss Earnings?" →