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Groupon IPO on hold

reuters.com

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Re: Groupon IPO on hold

#41

Post by gojomo »

jonknee wrote: post #39
jey wrote: post #34

Earlier quoted context omitted.

$382MM? Why did the investors consent to that? That's a lot more than is needed to stop worrying about the founders selling the company to keep paying their bills.

Lefkowsky was already very rich before Groupon, there was never a worry he'd sell to pay his bills.

Indeed, and he makes Mason's comparatively small sales look better in comparison. I don't begrudge a founder taking some profits early: for a job well done so far, and to offset the natural conservative loss-aversion that might otherwise dominate their decisionmaking, to the detriment of all investors.

But with Lefkofsky, it appears the more experienced and sophisticated investor who also needed the money least took the most money off the table. Hard to see that as anything other than serious insider doubt about the company's prospects.

Re: Groupon IPO on hold

#45

Post by JacobIrwin »

jacques_chester wrote: post #35
JacobIrwin wrote: post #26

Earlier quoted context omitted.

Revenue is also cash - before expenses [they are collecting this amount]. I'm not suggesting that Groupon's 'operations activities' aren't responsible for pulling/keeping them in the red. However, investors like Warren Buffet look for high-earning and unprofitable companies quite frequently to get involved with - companies like Groupon. Reason being, with some direction by a strong [/new] board of directors (majority…

> Revenue is also cash Please read an Accounting 101 textbook to learn why this isn't true.

"Revenue is calculated by multiplying the price at which goods or services are sold by the number of units or amount sold." - Investopedia

You may be thinking of 'marginal revenue' perhaps. I am talking to both of you.

Tell me to read an accounting book - sure, if I have time after I am done buying a basket of financial sector out-of-the-money put options for the boutique hedge fund I manage this morning, I will be sure to do that. So yeah - while, I am brushing off my old 101 book, maybe you can try not to make yourself sound foolish in front of audience next time.

http://www.investopedia.com/terms/r/revenue.asp#axzz1XG80Hyj...

^^^ Definition of 'revenue'. I.e., 'gross,' 'top-line,' 'nothing to do with expenses; yet.'

http://www.investopedia.com/terms/m/marginal-revenue-mr.asp#...

^^^Definition of 'marginal revenue.'

http://dictionary.reference.com/browse/plebeian

^^^Those that, by definition, never make it to the top 1%; ya both.

Re: Groupon IPO on hold

#46

Post by jacques_chester »

JacobIrwin wrote: post #45
jacques_chester wrote: post #35

Earlier quoted context omitted.

> Revenue is also cash Please read an Accounting 101 textbook to learn why this isn't true.

"Revenue is calculated by multiplying the price at which goods or services are sold by the number of units or amount sold." - Investopedia You may be thinking of 'marginal revenue' perhaps. I am talking to both of you. Tell me to read an accounting book - sure, if I have time after I am done buying a basket of financial sector out-of-the-money put options for the boutique hedge fund I manage this morning, I will be s…

I'm very happy that you can buy baskets of financial sector out-of-money put options for boutique hedge funds and still find time to use Google.

However, you are still wrong. In accounting, revenues are not the same as cash. A revenue event may be committed to the books well in advance of cash changing hands, and indeed the first step for most revenue is to be entered into accounts receivable.

What we are discussing here the difference between cashflow and revenue, which is a critical question for investors because of the way Groupon is choosing to run its books.

If you would be so kind as to tell me the fund you work for, I would be grateful. It is my intention never to invest in such a firm.

Re: Groupon IPO on hold

#47

Post by tokenadult »

trotsky wrote: post #15

How long can groupon survive without more funding? The way their financials sounded, I doubt they could even carry on as they are currently through the end of the year. That's a lot of pressure in an economy that could be back on the ropes.

From the submitted article: "Its IPO filing in June revealed a company growing quickly, but losing a lot of money." It's tough on a company's future to lose money so consistently, so, yes, it's likely Groupon will not survive.

Re: Groupon IPO on hold

#48

Post by m0wfo »

dpapathanasiou wrote: post #13
wpietri wrote: post #10

Maybe they can turn this around by offering their stock for 50% off normal ticker prices. Then surely people, having bought it once and discovered how awesome it is, will come back again and again to pay full price.

That won't work because they'll just attract the worst kind of cheapskate investor demographic, who'll move on to the next penny stock once the discount is expired.

http://en.wikipedia.org/wiki/Sardonicism

Re: Groupon IPO on hold

#49

Post by create_account »

rjbond3rd wrote: post #37
dpapathanasiou wrote: post #13

Earlier quoted context omitted.

That won't work because they'll just attract the worst kind of cheapskate investor demographic, who'll move on to the next penny stock once the discount is expired.

> worst kind of cheapskate Exactly (the OP was being sarcastic :)

I think he gets it. He's being sarcastic, too.

Re: Groupon IPO on hold

#50

Post by create_account »

m0wfo wrote: post #48
dpapathanasiou wrote: post #13

Earlier quoted context omitted.

That won't work because they'll just attract the worst kind of cheapskate investor demographic, who'll move on to the next penny stock once the discount is expired.

http://en.wikipedia.org/wiki/Sardonicism

http://en.wikipedia.org/wiki/Non_sequitur_%28logic%29
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