I remain in awe that in this totally propped-up market of ours, any stock can succumb to gravity, but it seems that the business model for Angie’s List (about which I’ve written many times) is so flawed that it just keeps plunging. If this idiotic stock market actually returns to normalcy (e.g. a steady grind lower), I’d expect ANGI to get delisted sooner or later.
In this propped-up, hyper-inflated, completely-fake “market” of ours, if you run a public company that isn’t puking to new highs every day, you’ve got yourself some problems. Because, looking at these companies below, it seems to me that if in the year 2189, markets are every allowed to function normally again, they’re all going to find firm support at $0.00. I could show plenty more charts like this, but I’ll keep it as simple as A, B, C………. (more…)
Earlier this year, I found out a good friend of mine had a ton of Angie’s List stock (a seriously large amount). I normally refrain from giving advice to anyone one-on-one, even friends, but I urged him to get rid of it. He reminded me of this last night, when he sent me this snippet of one of my emails I sent him last February, (obscenity politely redacted):
I actually have thought Angie’s List was a
bullshit company. I wrote a scathing post about them in December. I think they’re going to be a single digit stock, perhaps even before the year is out.
Well, the market hasn’t opened yet, but I’ve marked with an arrow where the bid/ask currently is:
The same friend wrote me this morning to shared with me this information from ANGI’s earnings release, which, ummm, kind of explains the problem:
Let’s face it – any stock in the social media space that isn’t flying at the present time must have serious, serious problems. The updraft obvious from a glance at FB or TWTR should propel any firm to new highs (on a daily basis, apparently) that has a chance at a decent future. Thus, ANGI looks pretty bad. I wouldn’t be surprised to see this thing utterly collapse in 2014. I personally am stunned this thing has a meaningful number of subscribers at all. (more…)