Nasdaq Penny Stocks are on every investor and traders mind these days. I must say, it sure feels similar to stepping up to a game kiosk at a carnival lately when it comes to debuting as a new initial public offering these days. Question is will these quick-to-market social networking solution companies become a fan-favorite that end up morphing into a “Tech-Titan” or will they take the road less traveled and transform into the investor-dreaded “Portfolio-Anchor”.
We feel many of these Internet wannabe-bee start-ups should stay in school for at least another year, graduate properly using the method of becoming profitable first rather than forcing the issue now and being labeled before you know it on the “Nasdaq Penny Stocks” list down the road.
With the rapidly congested market within the new issue arena that has been hotter than the Arizona heat in August comes yet another heavyweight new arrival this week: Groupon, the high tech coupon clipping operation. It provides exactly what many investors are yearning for…astronomical revenue growth even if it comes at the expense of booking profits.
Groupon, based in Chicago, will trade under the ticker “GRPN” describes itself as a local e-commerce marketplace offering goods and services at a discount filed for an initial public offering to raise $750 million, although we here know the final cut will most definitely be much greater. The company founded in 2008 offers subscribers coupons via email, indeed a great concept especially in this trying economy.
Many of which provide daily deals for things such as half off the price for a night out towards a dinner or a hair salon visit. Groupon turns the coming transaction into the main event by requiring a certain amount of subscribers buy the deal within a specific time table or the deal merely becomes no deal. Groupon gets about 40% of the dollar value of the purchase price, on average, with the merchant then taking the remainder.