With Groupon’s (GRPN) stock trading like crap, it’s time to check in on this recent IPO and get some fresh opinions.
Leading up to Groupon’s IPO we were pretty negative on the whole thing citing its uncanny resemblance to a Ponzi scheme that needed IPO money the way Bernie Madoff needed new clients.
I had Josh Brown (@reformedbroker) on “Keiser Report” to talk about Groupon and other social networking IPO’s to get his take (second half of show). As you can hear in the interview, he was not too optimistic about the prospects for the company or its new shareholders.
Flash forward: The IPO came and it it traded at a slight premium for awhile; then it issued its first post-IPO quarterly that got Henry ‘Pump and Dump’ Blodget at BusinessInsider even more breathless than usual pumping the stock with more of his inane cheerleading dreck – writing this blog on his site.
A few weeks has gone by and now MorningStar has weighed in with a report on Groupon that is not good; which got Josh Brown to revisit the story in his blog.
We’ll keep an eye on this one. To me the whole space looks overcooked. I’ve read about VC money going into a company that offers subscribers a way to get disposable shavers delivered each week in the mail to avoid them feeling embarrassed about buying them at discount stores like Wal-Mart. This feels toppy to me; very 1999. Stay tuned.
Dollarshaveclub.com … Yeah, think about inefficiencies of that model, heh, not a future I subscribe to.
I’ve long hoped that the Facebook IPO will be the thing to trigger a total collapse, somehow. Be a suitable end to the current financial system.