SaxoTV

Berger: Looking for a good deal from Groupon

163 views
June 16, 2014 acquisitions, buy groupon, equities, equities over valued, equities prices, equities strength, equities trading, equity, equity market, equity markets, equity portfolio, equity strategy, equity trading, groupon, groupon 5%, groupon acquisition, groupon gap open, groupon stock, groupon stock price, grubhub, m&a, mergers, mergers and acquisitions, online companies, online stcoks rebound, online stocks, oopentable 2.6 billion, opentable, opentable stock, priceline, priceline acquisition, priceline buys opentable, priceline buys opentable for 2.6 billion, priceline mergers, rally in online stocks, saxo bank, saxo bank saxo tv, saxo bank trading floor, saxo bank tradingfloor.com, saxo tv, saxo tv saxo bank, saxo tv trading floor, saxo tv tradingfloor.com, serge berger, serge berger tradingfloor.com, social media companies, social media stocks, trade idea, trade view, traders tale, traders tale saxo tv, traders tale serge berger, tradingfloor.com, tradingfloor.com saxo tv, yelp

Online and social media stocks have experienced a resurgence as M&A activity in the online space continues. Serge Berger, the "Steady Trader", views the announcement of recent acquisition deals as a crucial turning point for the online space.

In April and May the vast majority of these same stocks took a sharp drive as concerns over a bubble and stagnant growth circulated. The stocks have since stabilised, rather than re-bounding in a V-shape pattern. According to Serge, this is a positive sign the market could be posed for a recovery. One stock in particular, Groupon, has caught Serge’s attention.

Groupon’s stock price jumped 5 percent last Friday after Priceline announced it had acquired OpenTable. Priceline will pay USD 2.6 billion for the online reservation website, or USD 103 a share. The 46 percent premium being paid for OpenTable has sparked an interest in the possibility of other acquisitions. Yelp and GrubHub also experienced a rise, moving up 9 percent and 8.5 percent respectively. Overall, this M&A activity has signaled a revival for the online consumer service space.

Serge is looking to buy the stock at USD 6.40 with a target price of USD 7.00. A stop can be placed at USD 6.10.

Disclaimer

Saxo Bank Group provides an execution-only service. All information provided on Tradingfloor.com is solely for general information. Tradingfloor.com does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. Saxo Bank Group will not be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available as part of the Tradingfloor.com or as a result of the use of the Tradingfloor.com.

Please read our notification on

Non-independent investment research disclaimer

Full disclaimer