Saturday, November 10, 2012

Groupon Plummets Towards Zero!


Less than one year ago, while Groupon shares were selling for $23.38,  I made a prediction and wrote in "Groupon Stock Holders! Head For the Exits!"


I'll make a prediction here: GRPN stock price will be under $5.00 by December 15, 2012 (maybe $1.00?) So if you want to be stupid and "BUY" then wait for their 60% off Groupon share price coupons! (Or, as Karl Denninger says, "There's crazy and then there's really crazy!") 

Well, now, the share price of Groupon is crashing even faster than I ever dreamed possible. Today, Groupon shares took another massive pummeling and, as of today's market close, Groupon has taken a thrashing dropping almost 30% in one day (- $1.15) to close at an all-time low of $2.76!




Yahoo! Finance reports in "Groupon Stock Plummets After Poor Q3 Earnings: Has it Hit a Wall?" ( a few hours before the market closed):


Groupon (GRPN) shares were under heavy pressure Friday morning -- at one point hitting an all-time low -- after the daily deals company reported another disappointing earnings quarter.

Shares of Chicago-based Groupon were falling 23.5% to $3 just after the start of trading. Earlier in the session, shares dropped as low as $2.95. Additionally, the percentage decline puts Groupon on track for the second-worst single-day drop in its short public history. According to FactSet data, the steepest decline in a single session was a 27% plunge on Aug. 14.

The stock has plunged 85% during its time on the market as investors have grown increasingly worried about the vitality of the company's business model.

Investors are worried about Groupon's "Business model"! What? Just how healthy could any business model be that is founded upon Spam Mail? 

Nevertheless, it is astounding how far and fast the once mighty have fallen! You'll remember that they were once offered $4 billion dollars for their business and they refused it. What's it worth now? A minor fraction of that?

Actually, I feel sorry for all those folks who have had hundreds of millions of dollar wiped off the books.

It will be a miracle if Groupon can survive in its current configuration for another six months, especially as the economy wanes. I predict bankruptcy or Groupon being sold before December 2013. Can Facebook be far behind?

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