Analysts who claim Groupon is headed to profitability with no debt and plenty of cash on hand are either ignorant, corrupt, or mesmerized believers of the hype.
Where is Groupon going to find profit when it had never had any? If it cuts its huge marketing bill, then sales drop. If it raises its cut of the action from merchants or customers, then competitors will take them away.
Since Groupon never made a profit and the vast majority of the investor money it took in has gone to pay cash to original investors, how can Groupon have any cash on hand? Where is it?
Are the analysts talking about the cash owed to merchants that Groupon keeps for 60 days? That should be logged as accounts payable. Not cash.
I probably should not even respond. No sense raging against the wind. Stick to my old advice that it is great to have ignorant, lazy, naive investors as every trade has a winner n a loser. After reading many posts here it surely is encouraging.
Posters like this jyard after reading his post I sort of feel sorry for. Whether stock goes up or down in the near term he/she just does not "get it" - first item reading comprehension "no debt and a billion dollar cash" please show us where you got those figures? Cut and paste, give us a link etc. I think you read something like that but you don't comprehend what you are reading. A lot of grpn cask is "accounted for" IT IS NOT theirs to spend.
No debt - hmmm u sure about that?
Next years earnings between 36-91 cents. LMFAO. Again you need to re read whatever you read. Not just gross revenue ya know their are items like operations, SG&A in other words what it costs to generate and run said biz. Grpn is losing money.
Cliff notes may have worked for ur freshman year of HS social studies class but it ain't working here. You either read what you want to read, don't comprehend or lazy. But what you and others have posted about grpn belong in the fiction dept. Simply not true.
And the creme de la creme "Analysts" LMFAO Yes Virginia their is no Santa Claus. The fact you event posted this shows you are beyond hope ya just don't get it.
But alas jyard maybe u are right you and the others should continue to buy and hold - average down whatever - keep going I'm sure it's going to work out swell for you. Btw can u please tell the board of any other long picks you may have or suggest from your dd?
I'm going back to sleep feeling all comfy and warm knowing all is right in the world safe in the knowledge that folks like the longs on this board exist in the world.
Tangible net assets are about 80 cents per share. Therefore, they need $6 billion in cash or more and "no debt" to be valued properly, say $9 billion and "no debt" to be considered undervalued.
The CEO already waved the white flag. By saying they want to "be the operating system for the multitrillion dollar local enterprises", he said " our results and projections and future as is will be disappointing, so we will pretend we have some excellent, big ideas to implement that we will let you in on during the earnings call"