Google did offer these guys $6 billon and they turned it down... making you think "these guys are really motivated and passionate about their product, do they really think they have this market cornered?"  Not exactly, their tactics have been very unconventional in the venture capital startup world paying out $930 million to employees and investors; astoundingly, out of the $130 million it raised in one round, $120 million went to the founders' pockets.  Who takes almost all the cash in a company and pays themselves early... especially if their expecting huge growth?  Reminds me of Indian companies during the offshore boom 15 years ago.

Jim Cramer is right on this one... don't let a bunch of money manipulators market an IPO.  My grandparents are watching TV saying "look at that new Groupon company, that's some pretty cool stuff lets buy shares... my Grandson would be so happy to know we are investing in the future of American technology".   Technology my a$$, making money from nothing for some fortunate few will not take this country anywhere.  You may think there is something illegal about this... nah, taking money from the ignorant has never been illegal.  All this means is executives were in cahoots with their VC's, building a brand and marketing reputation while seemingly risking little in the process by pocketing most of injected cash and showing amazing trajectories for revenue and cash flow.  They're targeting the 99% while the 1% is watching with a grin on their faces because its reassuring to know how we got here... a little brains, research and one golden rule.

"There is no easy money!"

You could easily say, "Hey Groupon is amazing for me, it gives me 50% off my burger at the corner Deli... Americans are saving money!".  Wake up, most of Groupon's deals are discounting local mom and pops to a negative margin just so they can compete with large conglomerates, and hope to get repeat business.  The idea is great, but your just trading money around... there is no growth in that... there is no IP in that, you cant sell that to other countries.

Look at startup's that actually create something... ones built with integrity, conservative means and a long term strategy.  The best I can hope for in Groupon's scenario is that a few good Computer Engineers make millions on this IPO and go make some startup's of their own worth a damn.

There truly is one sucker born every minute, some of them get together from time to time, party  and buy stock in worthless companies.

Groupon is not a smart investment but is a prime opportunity for savvy traders who exploit the system.

I read Groupon's SEC filing for this IPO.  I was amazed that they blatantly acknowledged that their current business model is practically unsustainable.  A few people will make a lot of money from this IPO, then there will be some serious profit taking or stock flipping.  Groupon's share price will dive just as fast as it rose.  Sooner or later Groupon's business model will be exhausted and Groupon will collapse.  I wish I were the first to see it but anyone with any business sense already sees it.

It has not worked out that way for the majority because people chase the coupon and do not return. On the surface it sounds great however in reality for most it is not worth the time nor money to try growing a business this way. 

Exactly.

 

I think after the initial hype. You can buy PUT options on this all the way to 0. There is no way they are going to be able to grow the ad space (which is really what they want, they are an advertiser, collecting fees.....But guess who *OWNS* that space. Google. And Google is launching their own coupon and local business services)

What is IPO?

Initial Public Offering.

 

Of course, the public generally can't get in on the deal unless you "know someone"...

Wow!  We're really doing this again? 

What is IPO?

I wasn't talking about 2-3 years, I'm talking about the short term.  And going from 57 to 65 is about a 15% gain.  Most stocks don't do that in an entire year.

The average investor had plenty of time to make a decision as it went down with the whole market. Could have thought it over, got it at a discount.

 

VISAs story make sense, it's really not comparable to the Groupon IPO. Visa is worth it's current price and even more. Between Mastercard and Visa, Visa is bigger and has more market share. In a world that will eventually move to a completely electronic purchase model, Visa makes sense for the next 50 years.

 

Groupon is a whole entirely different matter. And there have also been plenty of IPOs that didnt' even pop this year. They got sold down on the first day from the start. Pandora and Lindken come to mind.

Only an idiot will work with this company, they rob the merchants forcing them to lower their prices to publish a very attractive offers to consumers and they don't honored the coupons cause it's IMPOSSIBLE to sell services at the prices they want and keep 50% for themselves, a complete scam, a phone that no one answer and no customer services at all !!!!!.Federal consumer protection agencies should investigate!!!!