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Groupon Needs To Be VERY Careful, Because The Sharks Are Circling (GRPN)

Source: http://www.businessinsider.com/groupon-needs-to-be-very-careful-because-the-sharks-are-circling-2012-4


Diver Shark Attack

Groupon is bleeding in the water, and the sharks are circling.

On Friday, we learned that Groupon under reported the number of returns it had in Q4, and that the company had to revise its earnings.

Then Groupon’s auditor filed a “statement of material weakness,” basically telling the SEC it would not vouch for the company’s numbers.

Yesterday, the WSJ reported that the SEC is investigating the company.

That’s not all the company has to worry about. 

Institutional investors put big money into Groupon’s IPO.  

Since that day’s highs, the stock is down more that 50%. It tanked 16% yesterday alone.

If those institutions can blame somebody else for those losses and recoup any of their own investor’s money, they will.

That means if those investors catch even slight whiffs of fraud out of Groupon – and trust me, they are sniffing – the lawsuits and subpoenas will come in rapid succession.

Ever seen a shark frenzy?

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Tuesday, April 3rd, 2012 news No Comments

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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