Great Deal: Groupon Shares Offer 50% Upside
By Sankrant Sanu:About a month ago, we had pointed out that Groupon (GRPN) shares were significantly undervalued and there was profit to be made from investor fears. We had suggested that:
Groupon has gone down far too quickly, based mainly on fear. A positive surprise in the next earnings report on May 15, 2012 could easily return it back to where it was trading just two weeks ago at $18+.
Since then, the market provided significant opportunities to profit from the fear around Groupon while the business has been firing on all cylinders. The stock remains significantly undervalued and there is little reason why it shouldn't go back to the $20 in the next few days after this earnings release.
Fear creates opportunity
Significant concerns have been expressed about Groupon:
- It is a bad deal for merchants so it won't last. In reality: The customer is king. As we pointed out in