i just hope that the company goes bust before the lock-up expires. i'd rather see VCs write-off another bad investment rather than seeing that stock be dumped to pension funds.
Groupon doesn't pay any form of dividend.
There is no major positive event to trade it around.
Given that, I'm curious to know what pension fund you think would invest in Groupon?
Agreed, they aren't restirited to buying stocks that fit that criteria, but that is how they invest.
> where did you get that information from?
Hedgie here. Almost all pension funds don't invest in stocks unless: a) they are part of an index and the fund just buys the index b) the stock pays out some sort of income that the fund can use to fund its liabilities to the pension holders. c) the fund has some advantage that the rest of the market doesn't have that can make it money off of hte stock.
I can't really see any of the above applying globally to pension funds that would cause them to be a net buyer of groupon.
Now those funds, typically hedgies, will get in and trade groupon, ie by and short the stock between chosen intervals.
you might not believe it from all the negative press groupon has gotten here but there has been some strong buying happening from the hedgies, accompanied by even stronger shorting.
The borrow has been the largest reason why shorting hasn't been stronger.
As to the original point of Groupon being "dumped on pension funds". You'd be surprised but the quality of many of the investment professionals working at pension funds, there are some really smart people working there.
They won't just buy groupon like complete idiots, they are typically very intelligent investors. The only case I can see them being net buyers are the points I originally listed.
1) they are forced to as they have to own certain indexes 2) the stock starts paying out a large and consistent revenue stream the fund can use to cover it's monthly liabilities. 3) they do a deal with groupon to put more money into it that gets them a value well below what the current mkt value is.