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Strategies & Market Trends : The Residential Real Estate Post-Crash Index-Moderated -- Ignore unavailable to you. Want to Upgrade?

To: stockman_scott who wrote (24192)	6/3/2011 2:56:49 PM
From: S. maltophilia	3 Recommendations Read Replies (2) \| Respond to of 119361

Yep, obviously a screaming buy: Groupon is Effectively Insolvent Conor Sen JUN 03, 2011 9:40 AM Groupon is Effectively Insolvent 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 in............. minyanville.com