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
TheStreet Open House

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

Stock quotes in this article: GRPN, GOOG, TUES, IPXL, SOHU, JCP, VNO, XIN, HGSH, JNJ, GSK

5.) Au Revoir Andrew Mason

Shares of daily deal site Groupon (GRPN) 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

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 16,888.10 -154.80 -0.91%
S&P 500 1,959.65 -12.64 -0.64%
NASDAQ 4,457.3130 -36.0770 -0.80%

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