3 ms·
The research I'm following [1] (and probably over simplifying here) indicates that the double dip in the stockmarkets will really kick off this month (Sept 2011
by JacobAldridge 15y ago
The research I'm following [1] (and probably over simplifying here) indicates that the double dip in the stockmarkets will really kick off this month (Sept 2011) for at least 6 months.
Maybe Groupon thought they could sneak in ahead of that; maybe they thought the economy wouldn't double dip; maybe they thought there was enough positive momentum in the idea of Groupon that external factors wouldn't matter.
But the scary thing is that if they've heavily cut back on marketing AND they're low on cash as other reports have indicated, then they won't be able to postpone the IPO through until March 2012. They may be forced to list as the market tumbles or, best case scenario, at the bottom of the next bull run. Not ideal timing unless your definition of ideal involves "buy high, sell low".
[1] See all the economic articles by Darren Shirlaw here http://www.shirlawsonline.com/editorials http://www.shirlawsonline.com/editorials .
(Disclaimer: I'm completely biased because the companies I own are licensed through the company Darren founded, so part of everything I bill goes to his research and development team (and I've been part of that team for specific projects, including currently reviewing his articles and predictions from the past 4 years for a short book on navigating through it all).)
- jonknee 15y ago... I think it's much more likely they didn't foresee the negative reaction that their IPO filing created. The buzz is bad, therefore they will try and refocus and won't do an IPO right now.