More Signs of MoMo Shakeout – REDF

Remember when (REDF) made an announcement about a “group buying” service in 40 cities, and it was cheered as the “Groupon of India” (rah rah!)? The stock hit $13s that day, and bubbled up to hit $18 two sessions later. Since then? POOF.

Just fill one gap at $12 (one more to go in mid $9s) and is now substantially below the level when it made the announcement.

Everywhere I look the “social media” and “groupon clones” are taking knives to the backs. This is the other side of the mountain when you play the nonsense trading lemming action. You can dance (just do it by the exit), and make sure you never drink (Kool Aid).

On the positive side this ‘cleansing’ should lead to some nice opportunities for the second half of 2011.

No position

About Mark Hanna 543 Articles

Affiliation: Hanna Capital, LLC

Mark Hanna is President and Owner of Hanna Capital, LLC, a registered investment advisory firm. Mark has been a follower of markets since the late 80s, with a focus on individual equities since the mid 90s. He has been a well known commentator in the financial blogosphere for the past 5 years, following a career in corpoporate finance and accounting. Mark attended the University of Michigan where he graduated with a degree in Economics.

As an avid reader, Market Montage is the personal blogging site for Mark to share his views on economics, markets, and the like. Occasional cynicism and wit shall be deployed in his postings.

Follow Mark on Twitter @fundmyfund.

Visit: Market Montage

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