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Groupon filed an amended S-1 registration with the U.S. SEC late last week, setting expectations for it's initial public offering of common stock. Groupon (Nasdaq: GRPN) expects to sell 30 million shares between $16 to $18 per share. The numbers value the company at about $10.1 to $11.4 billion, according to Streetinsider calculations.
But Groupon might be a losing proposition to investors who get in right out of the gate. According to one blog post made by two veteran accountants, recent data in the amended filing points to negative shareholder equity, indicating Groupon is technically insolvent.
Groupon reported having total assets of $795.567 million, with negative $14.696 million in shareholder equity. The company also issued pro-forma numbers, which boost total assets to $1.274 billion and shareholder equity of $464.1 million.
Another blog took the data and calculated Groupon's growth rate fell from 111 percent in 2010's fourth quarter to 72 percent the following quarter, to 33 percent in the second quarter and then to just 10 percent in Groupon's third quarter of 2011. Speculation surrounded lower marketing spend and increased competition from giant rivals like Google (Nasdaq: GOOG) and Amazon (Nasdaq: AMZN), among others.
Solid quarterly growth was also shown to decline from 97 percent in last year's fourth quarter to 73 percent in the third quarter, 16 percent in the second quarter, and just about 1 percent last quarter. Such data suggests Groupon did not benefit from further personalization.
Groupon appears to be landing following a few years of flying high. No doubt, CEO Andrew Mason will attempt to quash most media reports, but numbers don't lie. With it's latest filing, an IPO is not far off, but a prudent investor might want to wait until volatility has worn off before looking to secure a deal on this one.
But Groupon might be a losing proposition to investors who get in right out of the gate. According to one blog post made by two veteran accountants, recent data in the amended filing points to negative shareholder equity, indicating Groupon is technically insolvent.
Groupon reported having total assets of $795.567 million, with negative $14.696 million in shareholder equity. The company also issued pro-forma numbers, which boost total assets to $1.274 billion and shareholder equity of $464.1 million.
Another blog took the data and calculated Groupon's growth rate fell from 111 percent in 2010's fourth quarter to 72 percent the following quarter, to 33 percent in the second quarter and then to just 10 percent in Groupon's third quarter of 2011. Speculation surrounded lower marketing spend and increased competition from giant rivals like Google (Nasdaq: GOOG) and Amazon (Nasdaq: AMZN), among others.
Solid quarterly growth was also shown to decline from 97 percent in last year's fourth quarter to 73 percent in the third quarter, 16 percent in the second quarter, and just about 1 percent last quarter. Such data suggests Groupon did not benefit from further personalization.
Groupon appears to be landing following a few years of flying high. No doubt, CEO Andrew Mason will attempt to quash most media reports, but numbers don't lie. With it's latest filing, an IPO is not far off, but a prudent investor might want to wait until volatility has worn off before looking to secure a deal on this one.
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