Weekend Sleuth: The Next Bubble to Watch

The Penny Sleuth Features: Penny Stocks, Options and High-Growth Opportunities! Weekend Sleuth: The Next Bubble to Watch By Jonas Elmerraji January 29, 2011 Dear Penny Sleuther, There’s a new bubble brewing on Wall Street — the thing is, it’s hardly under the radar… I’m talking about the massive premium that’s being paid for private equity right now. The hubbub surrounding Goldman Sachs’ solicitation of investments in Facebook hasn’t exactly been a secret on Wall Street — and the terms aren’t particularly rosy. The social network is currently priced at massive premium over publicly traded tech firms like Google (NASDAQ: GOOG) or Apple (NASDAQ: AAPL). And Facebook’s hardly the only example of irrational exuberance in the private equity market. Just last month, online coupon site Groupon rejected a $6 billion bid from Google, opting instead to move toward an IPO. Online radio website Pandora is exploring similar options following a meeting with Goldman Sachs investment bankers. And on Thursday, professional social networking site LinkedIn filed paperwork for a $175 million initial public offering in 2011. In large part, private equity firms live in a bubble — without the price discovery benefits that stock market investors enjoy, the premiums for private firms can get huge. And they’ve been climbing in 2010 and 2011. The fact that venture capital investors are looking to exit their stakes by unloading them on the public markets has big potential to be troubling. It’s a trend that we’ll be watching closely… Meanwhile, here’s a look at some more immediate market trends to keep an eye on: Get All of My Favorite Penny Stock Plays Automatically The CXS Money-Multiplier Strategy helps me find enormous gains. And I’ve made it incredibly easy. I do all the work, telling you when to buy and sell. The profits can be awesome. You’ll HATE Yourself if You Miss This One! Solar Penny Stocks and Virtual Worlds of Profit This week the Penny Sleuth featured technologies to keep an eye on with both gaming and solar technology… and a whole lot more. Here’s a recap of this week’s investment insights… Virtual Worlds of Profit — On Monday, Patrick Cox discussed how gaming technology could bring in the next wave of computer technology. Chart Smarts: Why You Should Expect Continued Gains in Stocks — Tuesday, I talked about receiving continued gains in stocks for 2011. Conquer These Three Negative Trading Emotions — Greg Guenthner joined us on Wednesday to talk about 3 negative trading emotions that investors should steer away from. Why Solar Penny Stocks Could Generate Big Gains in 2011 — On Thursday, I was back to tell you about how the development of solar technology could lead to profits in the near future. Screening Your Next Penny Stock Winner — Yesterday, Sleuth Associate Editor Jessica Comitto showed you the first step to setting up your stock screen to narrow down the vast world of penny stocks. Comment or question about an article? Just click on any article’s title above and join the conversation by leaving a comment... We’ll be back on next week with more thrilling insights on the on today’s market climate… Until then, please send me any editorial comments or suggestions at editor@pennysleuth.com. Have a good weekend, Jonas Elmerraji Managing Editor, Penny Sleuth P.S.: On Wednesday, I recommended that my Penny Momentum Trader readers sell their options in US Airways (NYSE: LCC) for 51% profits in just a single week. That trade marks the fourth double-digit gainer that PMT readers have had the chance to book in 2011 alone. To get my next recommendation, click here for a brief overview of how my STORM System picks small-cap stocks that are poised for quick gains… Exposed! How Wall Street’s Breaking the Rules... Wall Street is secretly breaking the rules, and making a mint! Now you can too — it’s 100% legal — and could have already bagged you $123,850! Skeptical? Curious? Then simply click here right now to find out more. The Secret $200 Retirement Blueprint Investing in Penny Stocks What Is Technical Trading Follow the Penny Sleuth on Twitter, here. Become a Facebook Fan of The Penny Sleuth, here. The Penny Sleuth, a free e-letter, offers independent news and commentary on small cap stocks, options and high growth opportunities. We sent this e-mail to KNUMASSCN@gmail.com because you or someone using your e-mail address subscribed to this service. Are you having trouble receiving your Penny Sleuth? You can ensure its arrival in your mailbox by: Whitelisting Penny Sleuth. To end your Penny Sleuth e-mail subscription, click: Unsubscribe. 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