This Day On The Street
Continue to site
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

The 5 Dumbest Things on Wall Street This Week: March 8

5.) Au Revoir Andrew Mason

Shares of daily deal site Groupon (GRPN - Get Report) spiked 12% on the news of CEO Andrew Mason's expulsion last Friday. They added another 6% on Monday this week and 5% on Tuesday for good measure. Based on the stock's reaction, the market clearly sees Mason's departure as a step in the right direction.

Unfortunately, we here at the Dumbest Lab take the opposite view of Mason's ouster. His shareholders may be psyched to see him go after seeing Groupon's stock drop over 70% since the company's November 2011 IPO. Nevertheless, we remain saddened by his termination, even if it was widely anticipated.

Let's face it. He was totally crappy for them, but great copy for us.

We'll miss Mason's infantile management approach, like the time last year when he was caught addressing his troops under the influence of alcohol. At one juncture in the town-hall style meeting, Mason was forced to stop and apologize, saying, "Sorry, too much beer."

Actually, if we remember correctly, Andy's beer-swilling shenanigan was the final straw which led Starbucks (SBUX) CEO Howard Schultz to bolt Groupon's board. Boy, he must be glad he woke up and smelled the coffee before it was too late!

We also recall fondly Mason's other miscues, like his idiotic Super Bowl commercial that poked fun at the Free Tibet movement, the ridiculous poetry on his blog, the multiple accounting restatements and the silly stir he caused at the Securities and Exchange Commission which endangered the company's IPO. Perhaps above all, we'll never forget -- as much as we'd like to -- that weird YouTube video he posted of himself doing yoga in his underwear.

Well, maybe that yoga self-exploitation wasn't his biggest screw-up. Ask a Groupon shareholder right now and he or she will probably tell you Mason's decision to spurn Google's (GOOG) $6 billion offer for the company was his most memorable goof. At last check Groupon's market cap was just over half of that sum, and most analysts predict a whole lot of retrenchment ahead for the company featuring across the board firings, especially overseas.

"After four and a half intense and wonderful years as CEO of Groupon, I've decided that I'd like to spend more time with my family. Just kidding -- I was fired today," wrote Mason in his farewell letter to his troops.

Ah, what a trooper! Tongue in cheek 'til the bitter end.

Of course, unlike many Groupon employees waiting on their pink slips and meager severance packages, Mason can afford to be cheeky. He owns roughly 46 million shares, or 7% of the company, at last check. In other words, Mason's firing has been substantially profitable for him.

Even if it is a major loss for us.
1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
SYM TRADE IT LAST %CHG
GRPN $5.06 -2.60%
IPXL $45.84 -0.54%
JCP $8.50 -3.70%
SOHU $58.93 -1.70%
TUES $13.20 -4.10%

Markets

DOW 17,596.35 -350.33 -1.95%
S&P 500 2,057.64 -43.85 -2.09%
NASDAQ 4,958.4680 -122.0370 -2.40%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs