Groupon, Inc. (NASDAQ:GRPN)

CAPS Rating: 1 out of 5

The leading Deal of The Day site with discounts on things to do, eat, see and buy. Currently providing subscribers in over 550 cities world wide with unique local discounts based on group buying and promising businesses a minimum number of customers.

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Player Avatar MadM0ney (90.33) Submitted: 11/28/2012 9:51:47 PM : Outperform Start Price: $4.42 GRPN Score: +2.76

If the world market improves and a deal is reached in Europe Groupon will be one to profit. I like the idea of international exposure for the firm. I'm optimistic of the growth the firm can achieve in a recovering economy. Groupon's personality disorder, not knowing if it should focus on local deals, Groupon Goods or Groupon Getaways allows the firm to have a source of revenue regardless of economic conditions. For example, continued economic growth in the U.S. and in international markets has the potential to increase the amount of Groupon Getaways sold. In addition the prospect of 'local' Groupons for United States travelers to Europe is an intriguing business opportunity for the company. I understand the company will likely face continued decreases in margin as more Groupon Goods and Getaways are sold, but at this price I can deal with it. With no dividend and a relatively strong Euro, if the fiscal cliff does raise the tax rate for yields I could see Groupon becoming a more appeal e-commerce growth play. Additionally, if the United States dollar weakens against the euro and growth in Europe picks up the company is capable of record profits if not just from a currency play. "For the nine months ended September 30, 2012, we derived 53.4% of our revenue from our International segment, compared to 46.6% from our North America segment." - Groupon's 10-Q

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