Replies to post #3932 on Groupon Inc. (GRPN)

[FUNMAN]

I don't believe a buyout is coming anytime soon. Rich Williams is in the middle of turning the ship around.

Anyone interested in GRPN won't want to dismiss the man who is finally starting to make things work. Who is finally focusing on the bottom line and not just the top line.

No one should be so conceited to think they could do better than him. If it were so easy, plenty of people had the opportunity to do it before him.

Anyone interested in buying out GRPN wants Williams to finish divesting GRPN of what doesn't work and costs to much money to run. GRPN needs to divest of more foreign business. They don't want to pay for the garbage.

Rich Williams is building the high margin business. If he adds revenues of $50 million to it, they could drop the entire merchandize side of the business and GRPN would be profitable.

Anyone with the kind of money it will cost to take over GRPN will be willing to pay a premium for a sparkling gem.

Alibaba has a 5% stake and about a 25% unrealized gain right now. I would think before a buyout came from them, they would raise their stake in GRPN. We'll all know about it when the SEC forms are filed.

The player who will come forward to scoop up GRPN will be some company that stands to gain the most from cross marketing to GRPN's existing customer base.

Alibaba and Amazon are natural fits. Netflix and other entertainment conglomerates might fit the bill too.

I've said before that Trip Advisor could be a player in that regard, and someone else opined that Yelp would be good too.

The one to finally come forwards will be the one that feels it has the best cross marketing fit.

I think part of it depends upon what GRPN eventually evolves into.

Right now I think a PPS under $5 is a buy, under $4.50 is a great buy and if GRPN ever settled back under $4 it would be an outrageous opportunity to buy for a child's college fund.

There's still time to watch what Rich Williams is doing before diving in to buy more GRPN. Just to be safe, folks can watch to make sure he is lining everything up in a nice row.

GRPN isn't turning around on a dime. They are doing some great things almost every day now.

It's still going to take time. There will be PPS dips and opportunities to buy. I'm watching for them.

[FUNMAN]

Why Groupon, Inc. Stock Rose 17.1% in September

The digital deals company still trades well below its IPO price, but it's been on roll in 2017.

By: Keith Noonan (TMFNoons) Oct 9, 2017 at 8:34AM

What happened

Groupon (NASDAQ:GRPN) stock increased 17.1% in September, according to data from S&P Global Market Intelligence. The gains are attributable to momentum from the previous month's earnings beat, a favorable start for a new service, and increased investor confidence in the company's comeback initiatives.

So what

Following better than expected quarterly earnings results in August, Groupon introduced a new service in September and is enjoying momentum that has driven its share price up roughly 50% year to date. Groupon+ debuted in 23 U.S. markets on Sept. 6 and offers coupon-less cashback from roughly 1,500 local restaurants. Groupon has plans to expand the regional availability of the service and branch it to new types of businesses, and some early reports see the new offering gaining traction.

The market also seems to be looking favorably on the company's efforts to move away from physical goods sales and focus more on local deals in its best performing geographic segments.

Now what
The company is prioritizing connecting consumers with local deals as its core growth avenue, and its stock performance will likely hinge on its ability to continue growing sales and margins in the category. Adoption for Groupon+ is also something investors should keep an eye on, as the company is counting on voucher-less deals to be a long-term performance driver.

Groupon has now delivered three consecutive quarters of profits and remains under pressure to continue growing earnings. Margins have improved following layoffs and other cost-cutting initiatives, but, with much of its restructuring completed, the company will need growth from its locals category to offset declines in the goods segment.

Groupon's annual revenue has been roughly flat in the last two years, but fell 5% year over year in the last quarter, and management has indicated that sales could start to slip as the company prioritizes more profitable operating segments.