Daily deals site Groupon has seen its stocks tumble nearly 17 per cent, after mistakes in its fourth quarter results announcement forced the firm to issue a revision over the weekend. Groupon shares finished US trading on Monday down 16.89 per cent to $15.27, meaning its stock has now fallen 41.5 per cent from its debut close at …
Because no-one gives a **** about Groupon :-)
Building with no foundations.
Dot com bubble all over again
I'm sure there's more to come in this next bubble. After all, there really hasn't been any reforms to the US financial system. The fact that this company has made such basic accounting blunders, both of which involved the company failing to account for its major expenses, does not bode well.
The JOBS act which has just passed both Houses includes quite a lot of reforms. Just not the kind you might have been thinking about. A few highlights:
* "small" companies with under USD 1 billion in turnover a year will be freed from such onerous reporting
* companies will be able to have up to 2000 shareholders without having to publish their accounts. That they are currently limited to 500 is considered to be one of the reasons for Facebook going public
* unregulated crowdsourcing via the internet is to become legitimate
Sterling work by the investment banking and venture capital lobby, don't you agree? The next bubble is going to be so much bigger!
But can we trust the figures when they post a profit?
No, but it should provide the needed uptick so you can execute a short on the company stock and make money when they finally go bankrupt.
The biggest short ever?
Do I need paper money for this game?
Haven't people realised groupon is a scam yet? There is no future in their business, at least not a high value future. They've padded their earnings and projected earnings and quickly sold off a large chunk of the company at an inflated price.
Any investors who couldn't see this coming deserve their shirts being taken tbh.
"the firm's business model was untested"
And there was me thinking the problem was that they *had* tested it rather than simply filing it under "maybe not".
All you bitter posters are just jealous you didn't snap up some of their stock when it went on offer... All the wise people who invested in Groupon are on a one way ticket to paradise
A hell of a spammer
A hell of a spammer in my mail box, but I have used it a few times.
Today's Groupon special offer
Buy a $26.11 share for just $15.27!!
For the uninitiated a "material weakness" in your accounting systems is the polite way to say the numbers in our books may or may not reflect reality. The SEC *has to* investigate this as it's the bread and butter of what they were created to do.
If this is reflected in "material misrepresentation" in the IPO there may be hell to pay.
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