Groupon, Inc. Message Board

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Technology Stocks : Groupon, Inc.

GRPN 18.99

+2.4%

3:59 PM EST

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To: Glenn Petersen who wrote (12)	6/3/2011 3:00:06 PM
From: stockman_scott	1 Recommendation of 480

Yep, this new IPO might be a screaming buy...LOL... Groupon is Effectively Insolvent JUN 03, 2011 9:40 AM I'll start by tipping my hat to Andrew Mason. He caught social mood just right, creating a coupon/local/flashmob hybrid business model at the perfect time, and has created the fastest-growing company on a revenue basis in American history. That being said, it's operating like a Ponzi scheme that needs constant infusions of cash to stay afloat as it's hemorrhaging money. We'll start by looking at the balance sheet, which is typically a waste of time for hypergrowth companies. However, for Groupon there are all kinds of red flags. They have $290 million in current assets ($208 million in cash) and $520 million in current liabilities -- current assets minus current liabilities puts them $230 million in the hole. This wouldn't be a problem except for the fact that they're wildly unprofitable, which we'll get to... minyanville.com

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