Groupon Insider Selling Has Investors Watching


groupon insider selling GROUPON INSIDER SELLINGNot so long ago, before smart money got wind of the planned Groupon insider selling, this brand name IPO had the potential to be one of the hottest, most sought after deals of the year. Then IPO mavens and institutions started looking at the numbers, which were not very impressive. Groupon’s losses basically overshadowed their impressive revenue growth. In addition private equity IPO’s have had a mixed track record because of smart money selling to retail investors, and while Groupon Insider Selling isn’t exactly in that category, IPO investors have generally stay away from deals where IPO proceeds go to management, as opposed to companies that actually use the raise for future growth and operations.

However, the tide has seemed to change, The amount of stock being sold has been scaled back drastically as the deal size has become considerably smaller. In other words the Groupon insider selling might become alsmost a non event.

It’s no secret that hedge funds and institution often go long large cap NASDAQ names, when sexy IPO‘s trade at heavy premiums. This effect often creates short term rallies and trickles down to increase the confidence of retail investors.

Groupon Insider Selling Has Traders Worried


Is this the deal that can potentially turn the tide for the market ? Or will the bad taste from the formerly planned Groupon insider selling turn the smart money off ?

Well we think it’s unfair to put so much stock in the performance of one deal. Early reads are showing that the deal could do exceptionally well if the market remains stable and Europe doesn’t implode. But if our recent decline continues this deal could be allocated to retail accounts in a way that nobody could have imagined only a few months back. Despite the scaled down size of the offering.

So for now it might best just to use the broader markets as a gauge for the interest in Groupon. The decreased Groupon insider selling is a start, but we are not out of the woods just yet.

See Related Article Groupon IPO

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Carl Ichan is Bullish


carl lchan Carl IchanAs evidenced by Monday night’s CNBC interview, Carl Ichan is bullish. While he took time to mention that he thought Obama and the Democrats in general were not pro business enough, Mr. Ichan exuded some confidence in the broader markets, feeling they were oversold.

Is the fact that Carl Ichan is bullish enough to bring value buyers back into to the market ? Well, Tuesday’s monster rally might of signaled that there were other like minded PM’s with the same agenda.

Carl Icahn has indicated that he is returning funds to his investors, but will continue to trade his personal funds. When Carl Ichan is bullish it’s generally on an activist level, where he takes large positions and tries to influence of companies that often are out of favor. Here are some of his current positions listed below:

Carl Ichan Watch List


Motorola Mobility Holdings (MMI:NYSE) The chart on MMI looks horrible, but shares are off from the 52 week high of $36.54. The Motorola name doesn’t have the swagger that it once did, but shares could be considered cheap by some, simply because MMI has $10.27 in cash.

Hain Celestial Group (HAIN:NASDAQ)
HAIN had an exceptionally strong close on Tuesday, despite the fact that organic food an personal care products might not sell well in an economy that most feel is shaky at best. However, HAIN is a small cap stock with a market cap of $1.23 billion as of the close. So there is certainly room for upside. HAIN is volatile and has a decent sized short position, but is only trading at a little more than 1x sales.

Clorox (CLX:NYSE) Clorox is currently Ichan’s most high profile purchase. Carl Ichan recently made an offer to take the company private at $73 per share. As of Tuesday’s close, shares of CLX were at $67.20 and are paying a dividend in excess of 3.5%, which is nothing to sneeze at considering current interest rates. CLX is exactly the type of name that skitish, defensive type buyers will flock to in an uncertain market. Especially if Carl Ichan is bullish on the name.

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Penny Stocks to Watch, and Some Large Caps


Here are some stocks to watch for Thursdays session. These names range from large caps to penny stocks. Add the symbols to your list of symbols for tomorrow.

aapl stock 9 Stocks to WatchApple Computer (AAPL:NASDAQ) Beat estimates, and up in the aftermarket and could lead the NASDAQ either higher or lower on Thursday. AAPL will certainly be newsy tomorrow. So watch the talking heads. Their comments could lead to some quality scalps. Also, look for sympathy trades in Apple related stocks.


sagent pharmceuitcals 9 Stocks to WatchSagent Pharamceuitcals (SGNT:NASDAQ) This one came out of nowhere. Sagent is a pharma IPO that many thought would open flat. Instead the stock was up over 4 points at its high. Who says the IPO market is getting weak ?

compass diversified holdings 9 Stocks to WatchCompass Diversified Holdings (CODI:NASDAQ) Came up on the insider buying radar today. This is usually a good sign. Plus, the stock is almost in the middle of its trading range.


chipotle mexican grill 9 Stocks to WatchChipolte Mexican Grill (CMG:NYSE)
This rocket ship was down big on earnings in afer hours trading. Remember, these volatile, sub 10 billion dollar market cap stocks are traded heavily by hedge funds. This increases volatility and is not for the feint of heart. Probably best to sit on the sidelines with this one. Regardless if you are leaning long or short.

yahoo 9 Stocks to WatchYahoo (YHOO:NASDAQ) This stock seems like cement and never seems to move in either direction. The story is great and the fundamentals seems solid. Still probably best to wait for a move, unless you are the buy and hold type.


allied security 9 Stocks to WatchAllied Security Innovations (ADSV.PK) Once again, I am highlighting the most active IHUB message board. This name could be active with sub penny stock players in the AM. Especially the penny stock scalpers.


sprint nextel stock 9 Stocks to WatchSprint Nextel (S:NYSE) Just can’t seem to break the 5 dollar level with any conviction. Great story, but something seems to be missing. However this low priced NYSE name does have somewhat of a cult following.

 

 

intel intc stock 9 Stocks to WatchIntel (INTC:NASDAQ) Up big today after earnings. Is this finally turnaround time of stodgy old Intel. Seems to have eyes for $22. Remember this name used to be a great trading stock. But are those days gone forever ?



lithium exploration group 9 Stocks to WatchLithium Exploration (LEXG:OB) This stock has been a juggernaut recently. The penny stock set a new high today after a PR. However, the short term chart is looking a little parabolic.

 

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Here are some names to add to your list of stocks. These companies range from NYSE equities to sub penny pink sheets stocks. The goal is to get informed on one or two stocks from the group and form some sort of bias for Tuesday’s session. Good Luck.

Honda Motor (HMC:NYSE) The autos have seen some downgrades recently that have only added to weakness. In Honda’s case you have to obviously factor in the Japan economy situation too. The whole group looks weak and if we start to roll over, HMC could have it’s eyes on the $30 handle.

Apptech (APCX:OTC.PK) This name was the most active sub penny pink sheets stocks. I always like to point this out in entries for the penny stock scalper crowd.

Cameco Corp. (CCJ:NYSE) The grandaddy of all Uranium plays. Shares have been stuck in a trading range, although with a bias to the short side.Still one of the best ways to play the nuclear news flow coming out of Japan. Bottom fishers are still there and there is a gap to fill on the upside. But a break of this level could make $25 seem possible.

Alcoa (AA:NYSE) Earnings have been anticipated now for a few days. AA is certainly a market indicator and is down a little under 5% at the time of this entry. Alcoa could lead us down this week if the downgrades come and the talking heads get rolling.

ECA Marcellus Trust (ECT:NYSE) Announced a spot secondary after the close and the range will be at a pretty decent discount. However, the SandRidge Mississippian Trust IPO market crowd could come in and buy the discount if it reaches 5 or 6%, especially after the massive gain they took last week.

United States Oil Fund (USO:NYSE) Had it’s first big drop this month. I think this one is in no mans land for not only longs, but shorts too. Probably best to sit on the sidelines with this one. Unless you are are a scalper of course.

Walter Energy (WLT:NYSE) This is a typial hedge fund stock. It has a market cap under 10 billion and is volatile. However, it was down huge today after forming somewhat of a double top. This is another one that might be safer to watch than own or short.

American Superconductor (AMSC:NASDAQ) Down today, but still up from the low of the big gap down. The dead cat bounce wasn’t quite what some expected and a re-test of that low wouldn’t surprise many.

JBI Corp. (JBII:OB) The most active IHUB board at the time of this entry always deserves a mention. Especially for those who trade penny stocks.

Ada-ES (ADES:NASDAQ) Down a little over 45% at the time of this entry, and closed the session near the day low. The low of the year is below $5. So if we don’t see a bounce soon single digits are very possible.

Check back for more market updates, lists of stocks, IPO Market and penny stock news.


 

Market Report & 10 Stocks to Watch this Week


Stock Market Info


.DJIA: 12380.05
.COMP: 2780.42
.S&P 500: 1328.17
Russell 2000: 840.89
Crude Oil: 112.79
Natural Gas: 4.041
Gold (Troy Ounce): 1473:40

Friday’s Most Active Stocks


Citigroup (C)
SPDR S&P 500 (SPY)
Bank of America (BAC)
Cisco Systems (CSCO)
I Shares Russell 2000 (IWM)
Select Sector SPDR-Fin (XLF)

Friday’s Percentage Gainers
China Auto Sys (CAAS) +32.56
Synthesis Energy Systems (SYMX) +19.49
Genetic Techs (GENE) +19.25

Friday’s Percentage Losers
Puda Coal (PUDA) -34.07
SinoCkng Coke Chem -21.41
Aoxing Pharma (AXN) -18.73

US Markets:


Last week we saw negative to mixed results in the three major indices. These results were based somewhat on being somewhat on the market being overbought and the looming threat of a government shutdown. Both the Nasdaq Composite and the S&P 500 Index closed down 0.3%. The Dow closed basically even, but up less than 0.1%.

10 Stocks to Watch for Next Week :


Alcoa (AA:NYSE) Reports earnings on Monday and traded lower on Friday. Shares of Alcoa will certainly be a market indicator for the early part of next week.

Golar LNG Partners (GMLP:NASDAQ) In IPO news GMLP closed up roughly 10% on Friday. Commodity based IPO’s remain in demand and GMLP outperformed most IPO buyers predictions. Many thought this deal would trade with a .50 cent to $1 premium and GMLP beat that mark handily.

Cisco Systems (CSCO:NASDAQ) We mentioned CSCO a couple of times last week based on the potential of shareholder activists pushing Chambers to unlock value. The stock traded lower on Friday after a nice move higher. Value buyers could step in if the market is up early in the week.

3Power Energy Group (PSPW:OB) The green energy play is the top message board on IHUB at the time of this entry. This often leads to an active next day. Higher oil tomorrow wouldn’t hurt.

Silver Wheaton (SLW:NYSE) The silver streamer remains one of the best way to play this silver stocks rally. Seems to have eyes on the $50 “psyche level” , but be careful of a pullback. It could be fast and furious.

Novatel Wireless (NVTL:NASDAQ) Seems to be popular with bottom fishers and is trending on the Yahoo Market Pulse function. Needs to defend the $5 handle.

Corning (GLW:NYSE) Was down over 3% Friday and just seems to be in no mans land on a technical basis. Probably best to stay away from this name on both a long or short basis.

Ido Security (IDOI.OB) Sub penny stock name was technically up 100% on Friday. Despite the low dollar volume, moves like this often draw attention over weekends.

Molycorp (MCP:NYSE) Still looks strong, even after a monster run last week. Although, MCP didn’t follow through and squeeze shorts when a Colorado Congressman who is in favor of a rare earth reserve appeared on CNBC mid-day. Up or down, you have to keep all rare earth stocks on the radar screen. They are just too volatile not to watch.

Pfizer (PFE:NYSE) Pfizer was one of those low P/E, big revenue, low risks plays when it was in the teens. It was common knowledge that hedge funds were all over it a few points back. Were they buying in advance of the Capsugel Spinoff ? Or will they cash in the chips on Monday or Tuesday ? We will see next week.