NEW BULLISH Plays
Groupon, Inc. - GRPN - close: 5.52 change: +0.25
Stop Loss: 5.15
Current Gain/Loss: unopened
Entry on January -- at $--.--
Listed on January 31, 2012
Time Frame: exit PRIOR to earnings on Feb. 27th
Average Daily Volume = 12 million
New Positions: Yes, see below
Why We Like It:
GRPN was one of the first big players in the discounted daily deal on the Internet or in your email business. Nowadays the company has a lot of competition, which helps explain the stock's plunge from $30 to less than $3.00. Yet since its November lows GRPN has rebounded. Now shares are poised to breakout past resistance in the $5.50-5.60 area. Further gains could spark a short squeeze. The most recent data listed short interest at 18% of the 189 million share float.
I do consider this an aggressive, higher-risk play. GRPN can be a volatile stock. Thus we want to keep our position size small. I am suggesting we use a trigger to open bullish positions at $5.65. If triggered our target is $7.50.
Trigger @ 5.65 *Small Positions*
Suggested Position: buy GRPN stock @ (trigger)