Doug Kass Is Now Short Groupon

Nov 4, 2011
J. Webster
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On his Twitter feed Doug Kass announced he was shorting Groupon: “I am short Groupon today” he said in a Tweet below. And it looks like it was a wise move, as the stock was hanging around $30 a share only to drop down to $26 at the close.

The knock of course against the Groupon IPO is how they released a small number of shares, and that’s why the stock shot up, jumping 50% at the open. However, the big issue with Groupon is will they be able to stay in business when big players like Google expand their own online coupons offerings.

What was interesting though was Henry Blodget also weighed in on Twitter about shorting Groupon. Blodget said he would short the stock but he doesn’t trade. He said Groupon was extremely over valued.

The interesting part though is that’s quite an understatement by Blodget, saying he doesn’t trade. He doesn’t trade because he’s permanently banned from the trading securities. Why? Because when Eliot Spitzer was attorney general, he published Merrill Lynch e-mails in which Blodget gave assessments about stocks which conflicted with what was publicly published. Bloget was charged and banned. So, still something to keep in mind.

What do you say? Are you short Groupon like Doug Kass or going long?

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