This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

11 Stocks to Play the Groupon IPO

Stocks in this article: GSVC TZOO OPEN LOCM LNKD MOBI RENN UNTD SINA XOXO ACOM

WINDERMERE, Fla. ( Stockpickr) -- This week, Chicago-based daily deals site Groupon is kicking off its roadshow, during which the company will be pitching its IPO shares to institutional investors and large traders.

During a road show, company executives and management try to convince savvy market players who operate mutual funds and hedge funds to buy their stock. They present their firm's growth strategies and financial information to give investors a better understanding of why the company needs to go public and how it could be a solid investment opportunity.

For example, it's been reported that one of the things that Groupon will be promoting in its roadshow is the company's Groupon Now 2.0 initiative, a mobile app service that delivers deals based on a user's location.

>>5 Breakout Stocks to Leverage the Rally

Groupon's IPO deal is expected to be priced on the evening of Thursday, Nov. 3, and it's slated to begin trading on Friday morning on the Nasdaq under the proposed symbol "GRPN." Groupon is seeking to sell 30 million shares (less than 5% of the company) at a price of $16 to $18 a share, or $540 million, excluding an over-allotment option that underwriters might not decide to exercise.

Groupon's market value would be around $11.4 billion following the IPO, less than half the $25 billion that the company had anticipated in June. That said, even at $11.4 billion, Groupon is still coming to market above the $6 billion buyout offer that Google (GOOG) reportedly offered the company in 2010. At close to $12 billion, Groupon is valued at eight to nine times its projected 2011 revenues.

Once Groupon hits the tape, the stock could jump sharply if traders want a piece of the hot daily deals and social networking player. If a strong rally does indeed play out for Groupon on its IPO day, then a number of similar stocks could be good plays ahead of its IPO. It also doesn't hurt that a number analysts seem to be very bearish on the stock, just like they were on Linkedin (LNKD) before that stock soared on its debut.

Here's a look at a number of stocks that could make for great trades ahead of the Groupon IPO.

1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs