Groupon (Nasdaq:GRPN) continues to disappoint. They just do not seem to make anyone happy. Like an old flame who still generates passion but not fondness investors continue to be flummoxed. Management does not know what else to do. Brokers are saying sell and run for the hills.
Here is the problem or at least part of it. Hype was so high behavioural economists could have compared it to drug addiction. More just give me more. Take my money just give me more thrills. By the way to the uninitiated this is not financial analysis. This was euphoria which management played to.
Management has a problem. They cannot change their narrative. They cannot come out and lay out some new course of action. They are so locked into the daily deals conundrum any deviation will mean capitulation. They have to keep rolling the dice in the same manner.
Con artist’s are clinically unable to come clean and bring closure to their narrative. Some investors still believe too ardently and do not want to abandon the narrative. But quite frankly at this point you should be able to see the money. Groupon does not have an excess cash position.
Perhaps they need an intervention?
George Gutowski writes from a caveat emptor perspective.