Groupon (GRPN) Could Fall Another 45% Before Finding Support
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Recent IPO Groupon, Inc. (Nasdaq: GRPN) is in absolute free fall and investors are asking "when does the pain end?"
With little analyst support until the quiet period ends on 12/14/11, investors are scrambling to find a stable valuation level.
One thought is that the Google (Nasdaq: GOOG) $6 billion takeover offer, which was turned down by the company in 2010, could provide that bottom.
If Groupon were to fall to a $6 billion valuation, this would suggest a price per share of approximately $9.50. With shares currently at $17, this would be another 44% downside.
Shares of the Internet coupon provider are down nearly 15 percent on the day and down 39 percent from its November IPO open of $28.
With little analyst support until the quiet period ends on 12/14/11, investors are scrambling to find a stable valuation level.
One thought is that the Google (Nasdaq: GOOG) $6 billion takeover offer, which was turned down by the company in 2010, could provide that bottom.
If Groupon were to fall to a $6 billion valuation, this would suggest a price per share of approximately $9.50. With shares currently at $17, this would be another 44% downside.
Shares of the Internet coupon provider are down nearly 15 percent on the day and down 39 percent from its November IPO open of $28.
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