So as we all know GRPN will be reporting earnings on Thursday. I'm not going to focus on Technicals this time around, only because I find the Fundamentals so compelling.
Here are some numbers for us to consider:
Shares outstanding: 653.68 Million
Float: 252.38 Million
Held by Insiders: 55.95%
Held by Institutions: 40.10%
Held by The Public: 3.95%
Short Interest: 12.3%
So there are 9.96901 Million shares held by the public, and 37.1058 Million share short. Do you know how hard it is going to be to cover those short shares on Thursday?
Next lets look at earnings. Estimates are: High: $0.07 Mean: $0.03 & Low: $-0.01. Last quarter GRPN made $0.08 beating the street's estimates of $0.03.
This looks like the perfect storm to me. I know the company is in a tough field, and I went to the site and personally I wasn't impressed. However $0.03 is an easy number to make.
Also looking at the income statement you see Revenue climbing & Selling/General/Admin. Expenses dropping in the past quarters. They are cutting costs, and generating more revenue.
One thing I dislike about the company is the amount of cash they have on hand. They have a billion dollars in cash. I would like to see a credit to their Cash account and a debit to their Short Term Investments account.
Another potential headwind for GRPN: as per Reuters this morning "EBay Inc has quietly launched an online marketplace for deals on local services, taking on Groupon Inc and expanding into a potentially big category.".....
I sold my puts yesterday and bought more calls on the dip today.
Groupon Inc (NASDAQ:GRPN, GRPN message board) usually keeps markets waiting by posting quarterly earnings about a month late, but for the latest period the results may be visible immediately, as reported by Wyatt Investment Research. The Q3 data are expected on Thursday in a busy first week of the
Yup I saw this, and CNBC is also saying groupon is reporting on Thursday. I have no f***i*g clue where this is coming from though, considering the company itself said no such thing. I'm pretty sure they would give more than a 1 day notice, and GRPN premiums are retarded right now, I would load the truck in a strangle for the weeklies if they were really announcing in 2 days.
"I went to the site and personally I wasn't impressed."
If you are referring to using their website (not anything related to investor relations) then I would say first hand it has a nice and easy to use interface and is much more organized than its competitor living social.
thats my .02 anyways
"If you are referring to using their website (not anything related to investor relations) then I would say first hand it has a nice and easy to use interface and is much more organized than its competitor living social. "
I had never used a site like Groupon's before. I found the descriptions to me vague and I couldn't find the products on the merchant's website to see if there was a clear deal or if it was the same price.
Didn't groupon take poundings after each of their last two earnings reports?
I vaguely follow them..so I might be wrong about that.
But I dunno, I would almost be on the side with all those shorts.
They took a hit because the CEO didn't come off as professional during the quarterly conference call. He complained about Europe and the headlines for the next three days were 'Groupon Blames Europe For It's Short Comings.' They also put revenue under two different categories. Direct Revenue and Revenue. They got backlash when analyst looked at the numbers and asked if they were trying to cook the books on the conference call.
Since then the CFO has been doing all the talking. They have come out and said that Europe is picking up, and they came out with a new merchant credit card feature. Analyst upped their Estimates, and as long as the CEO doesn't say much, and I'm sure he won't, the earnings & and the earnings call look good. After people examined the numbers, even though odd, they came out as legitimate.
And I believe Earnings are AH with a conference call at 5 pm EST.