Smart Ass Commentators, Grouponzi and the 75% (Loss Taken By Those Opposing BoomBustBlog Research)

Reggie Middleton's picture


It all started in June of 2011, many months before the IPO of one of the biggest scams to cross the US equity exchanges (and that's saying a lot in and of itself). I posted a forensic analysis of Groupon “What Does Groupon and the Matrix Have In Common?". I warned, I valued, the company went public, and... Nov 12, 2012 Multiple Muppet Mashing Leaves Groupon Shareholders Holding The Bag After 89% Off IPO Coupon. In that particular post, I actually offered the full Groupon reseach to download for free. It's amazing how this obvious Ponzi scheme got so much analyst and investor attention. Any and all BoomBustBlog subscribers saw it for exactly what it was, and hopefully shorted accordingly!

Earlier, I got on the Ponzi Exposure Express once again... Sep 26, 2011 I Suggest Groupon Offer Coupons To It's IPO Investors, They're Going To Need Them. And previous to that, once again...

Here's an abstract from our June subscriber-only analysis - Groupon Forensic Analysis & Valuation (923.04 kB 2011-06-16 10:34:36):

“Groupon’s revenue consists of the gross amount paid by customers for purchased Groupon while gross profit is the amount that the company retains after paying its merchants an agreed upon percentage of the purchase price to the featured merchant. So the comparable number for price-to-sales to use for Groupon is gross profit, or the fees it collects from merchants, which the management has correctly stated as the best proxy for the value created by the company. To put things into perspective, if eBay used the same math as Groupon does, it would have reported revenues of $61bn instead of $9bn. The company reported gross profit of $530m over last 12 months. At $25bn valuation that would put the valuation at 42x “comparable sales”. To put things in perspective, Google trades at Price-to-sales of 5.8x, Apple at 4.7x, Microsoft at 3.3x, Amazon at 2.6x and Yahoo at 3.4x.“


In the latest S-1 registration statement, the company has revised its revenue figures by more than half. The company has restated its 2010 revenues from $713m to $313m while Q1-11 revenues were restated to $296m from $645m previously. The company has restated its financial results “to correct for an error” in the way it reported revenue. The revenue accounting change is Groupon’s second since it filed to go public. The company has also changed the presentation of certain expenses to be consistent with reporting revenue. Clearly, such errors and frequent change in the accounting policies clearly puts strain on the credibility of management – and that’s putting it lighlty, especially for a company that is contemplating an IPO, not to mention that such changes are top line numbers such as revenues. In another blow to Groupon, the company’s COO Margo Georgiadis is leaving the firm to join back Google.

How about... Muppets Get MASHED Once Again - Groupon Half-off (Share price) Sale, Aug 14, 2012 – CNBC reports that Groupon [GRPN 5.815 -1.735 (-22.98%)] plunged more than 20 percent...

I can go on, but why bother? This company was pumped, dumped and marketed by several big name analysts and banks. One would think independent analyst shops would be one of the biggest shops in all of Wall Street, no?

I have commented ad nauseum on the percieved need to do business with name brands, those who do God's work, and those who simply cannot trade - muppet masters and all - as I clearly articulated on the Max Keiser show.

... and on previous shows. 



Now, all of you Goldman, Morgan Stanley, et. al. lovers, don't get your muppetware in a bunch, you know that I know that you know that It Is Now Common Knowledge That Goldman’s Investment Advice Sucks???, as excerpted:


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El Oregonian's picture

Groupon=poopon shareholders...

Element's picture

but ... he looks so fucking repentant about it! ... and that ain't right dearest reggie-bitch ...

medium giraffe's picture

So where are all the assets that Groupon can sell to return shareholders at least partial value on their investment? Some call centre equipment and dirty desks?  This is exactly the kind of shit Benjamin Graham warned you about almost a century ago.  It's like 1999 never happened. 

Fucking saps.

adr's picture

When I think of the top floor of Goldman Sachs, this comes to mind:

The muppets will be slayed!!

The name of the champion is probably God's Work. I guess the little pink guy is Reggie.

NotApplicable's picture

Reggie, rightfully call Groupon all the names you want, but realize you are NO DIFFERENT.

As always, you gamble in a rigged casino, and one day, all of your "gains" will vanish in an instant.

Anyone who would advise others to "invest" in this "market" is either criminally inclined or stupid.

All you do is to help the squid by keeping your wealth within its system, while bragging how much better you are at forecasting than them. Well, guess what? They don't forecast the future nearly as much as they plan it.

oddjob's picture

Reggie wants to be king of wall street, not clean it up.

centerline's picture

Some day, if the human race survives the next 100 years, it will look back in shame at the era where the industry that was supposed to facilitate business became "THE business" and proceeded to wrap it's hands around the throat of the world.  A time when death and financial "3 card monte" became the driving "economic" forces.  Sad.


Texas Ginslinger's picture

Not, you bring up an interesting point.

Reggie, have you ever suggested to your subscribers that they cash in all their securities and sit on cash profits..??

At what point in the future would you make that recommendation..??


JeffB's picture

On the other hand, sitting on cash isn't exactly risk free, given the way they're printing some $85 billion a month in new "money".

Even holding real money like gold and silver has risks. Governments, including the U.S. have shown a predilection for outlawing it & mandated turning it in at a price they decide.


Freddie's picture

Multiple Muppet Mashing Leaves Groupon Shareholders Holding The Bag After 89% Off IPO Coupon

Reggie can sure coin a good phrease.  Multiple Muppet Mashing.   Love it . 

Reggie has ZH and Santelli attitude. I like it!

Biderman used to do calm market analysis and now he rants because Obummer Amerika is so ***ed-ed.