Don't get me wrong, if I can make a buck day-trading it, I will. But there's no way I'd keep the one overnight. I've researched Groupon extensively, there's plenty of information out there. Coupons are great, I agree with the previous poster. However, Groupon has a flawed model, almost a ponzi scheme in a sense in that they take in money for coupons and hold that money, not even releasing it to the vendor when it's redeemed, but at a future point....basically whenever they choose to release the money. So, they are using those funds to float the business, always counting on additional money coming in. Now, they have cash so won't have to do that so much...but they are so far from profitable that it's unclear how they'll ever get there. Especially now that Google, livingsocial and lots of other similar daily deal coupons have hit the market. Groupon doesn't have any kind of edge, this is a very easy to duplicate model, one that is vulnerable to undercutting on cost and easy for a local person to set up and run. Not to mention that the Groupon is so deeply discounted that most merchants are not making money or gaining new customers, they're just getting the cheapskates who want a deal....example a $20 pizza for $10. That person will buy the pizza for $10 but probably won't be back for another at $20....that's what the research shows thus far. It will be interesting to watch, and it's comical that Groupon aims to position itself as another Amazon, a company that continually expanded and delayed profits. However, Groupon is no Amazon, which is an innovator. All said, am happy to make profitable day-trades on Groupon all day long!
Famous last words, back to the IPO price. I thought it would take whole November to do that... You dumbfuck, you expect this to go to $300, so it doesn't matter if you buy it at 26 or 20. Load it up or shut up... I say this will be under $10 in less than a year... Do we have a bet???
Quoting you from another thread: We always said, the deals are good for the new costumers, but not for the vendors. Also, it pisses off loyal costumers already familiar with the service who pay the full price. Now did GRPN just hit a low of $17 today??? (35% drop in 3 weeks) Maybe my $10 target can be reached by Christmas!!!
Great call- To your credit-- Fundamentally you are right on the valuation. However we can't short it so the decline does nothing for us. I say a buy here at 15 limit is a good buy for the short term. May even put some on the table to ride from here to 25. Since I don't have the research report its a dead dog. Good call for short term. You saved yourself 35% because none of us own the stock. I never buy an IPO unless I got the Initial shares until 35 days after the date. KUDOS (You have to give credit where its due). when a trade sucks it becomes an investment- YOU buy more and hope it becomes a trade. :0
Good call- I mean Great call- When you make a great call it should be recognized. But remember this is where you pull the plug on the trade and not wait after the profits are loss and the stock breaks even.