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R.J. Chopin
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RJ Chopin is an equities strategist with over 16 years of trading and investing experience. He developed “Advanced Trading Concepts” a propriety step-by-step trading system for private traders and investors. A relentless advocate for investor responsibility, RJ advocates researching a company’s... More
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  • Groupon: Did Joan Lappin Violate The Defamation Law? You Be The Judge.

    Did Joan Lappin violate the law? Should Groupon's (GRPN) CEO Eric Lefkofsky consider legal action?

    U.S. Legal has this to say"

    Character assassination refers to the slandering or vicious personal verbal attack on a person with the intention of destroying or damaging that person's reputation or confidence. In other words it is malicious verbal assaults designed to damage or tarnish the reputation of a person. Once done, these acts are often difficult to reverse or rectify. Therefore it is likened to a literal assassination of a human life. The damage sustained can last a lifetime or, for historical figures and important personalities, for many centuries after their death.

    It involves a deliberate attempt to destroy a person's reputation, especially by criticizing them in an unfair and dishonest way when they are not present. It can also involve exaggeration or manipulation of facts to present an untrue picture of the targeted person, double speak, spreading of rumors, innuendo or deliberate misinformation on topics relating to the subject's morals, integrity, and reputation. It is a form of defamation.

    In a recent Forbes article penned by none other than Joan Lappin, CEO Lefkofsky suffered irreparable personal damage as Lappin vilified Groupon's CEO as a scoundrel (dishonest person) duping the public through trickery and suspect financial documents. He is characterized as a bamboozling rag salesman, hoodwinking Google and the public by refusing a $6 billion dollar offer from Google to buy Groupon before the IPO release.

    Lappin's article reads like a desperate attempt to destroy Lefkofsky's character and paint Groupon as a company in decline and one not to be trusted. After 5 years of revenue growth to the tune of $2.5 billion in 2013 and a blowout Q4, you would think she would have backed down a little - not so. In the face of all Groupon's success and growth, Lappin continues to trash-talk Groupon and its leadership.

    Lappin's article is at best irresponsible, and at worse meets the grounds for defamation. I would not be surprised if she or her cohorts have a huge short position.

    As mentioned in a previous article, shares of Groupon are seriously undervalued to its peers and intrinsic value and should be trading much higher. Many Wall Street analysts share this opinion.

    A final thought. Google valued Groupon at $6 billion 3 years ago when Groupon's annual revenue was $1.6 billion. Fast forward, Groupon's annual revenue in 2013 was $2.5 billion. Based on Google's valuation, Groupon would be valued at $9.3 billion today or $13.61 per share. Think about it!

    Disclosure: I am long GRPN.

    Tags: GRPN
    Mar 24 11:32 PM | Link | Comment!
  • Coupons.com Missing Article Explanation Of Over Valuation.

    On Thursday Seeking Alpha accepted my article for publication "Should You Avoid Coupons.com's IPO And Buy Undervalued Groupon Instead?"

    Unfortunately, it was taken down for editorial review. The problem with the article is that it links to form S-1/A that was filed with the SEC on February 14, 2014. On February 25, 2014 the company amended that form and reported a 2.5 for 1 reverse split, reducing the outstanding shares. In effect, my article challenged the valuation of 11 to 17 times gross revenues (sales) of $167,892,000, which was based on the IPO price of $12 to $14 and the pre split shares.

    Coupons.com's 11th hour reverse split, reported on February 25, 2014 to the SEC on form S-1/A changed the valuation making my previous research appear incorrect. But as you can see today, March 7, 2014, shares of the company priced at $16, were bid up to $27, and now are trading at $32.40 per share. By my calculations today, shares are now valued around 13 to 14 times gross revenues (excluding the other shares to hit the market later) making the company clearly overvalued.

    CONCLUSION

    Shares are extremely overvalued at $32.40 just as I stated in the article. The reverse split 2.5 for 1 share basically holds the same pre split overvalued price of about 13 to 14 times gross revenues. Coupons.com has a 2.3 billion to 2.4 billion market cap or 13 to 14 times gross revenues -- overvalued.

    The 11th hour reverse split, 2.5 for 1, has caused the stock price to go from the first estimates of $10 to $12, then $12 to $14, then $16 and now $32.40 succeeding in creating an overvalued stock at 14 times gross revenues and validating my original valuation.

    By comparison, Groupon is undervalued at 2.3 times gross revenues, making Groupon the wise choice.

    I tried to inform everyone as to what was going down, but...

    I leave you with this question. Why did the company pull a 11th hour reverse split?

    Source document

    www.sec.gov/cgi-bin/browse-edgar?company...

    Disclosure: I am long GRPN.

    Tags: COUP, GRPN
    Mar 07 1:05 PM | Link | 1 Comment
  • Update: Fear Creates Value Buying In Groupon

    Yes I am expecting a reversal.

    Groupon (GRPN) should reverse early Thursday morning and close higher on the day. Let me explain…

    Fundamentally and forward looking, Groupon is extremely cheap at $9.25 to $9.50. The insider selling that some think created the recent sell-off actually transpired between the 11th through 18th of Nov. at an average price of $10 and change. After the insider selling ended on the 18th, news reached the market on the 19th announcing insiders were taking profits - not a wholesale sell-off.

    Upon hearing the news, traders reacted in unwarranted fear and decided to sell because that's how they are conditioned to behave whenever any insider sells. For no reason other than "FEAR" did the stock price decline. It can't be insider selling driving it lower because the market already digested the move 3 - 8 days ago. The only thing selling now is "FEAR" which is mistake. I believe on Thursday morning, "FEAR" will be replaced with "VALUE" as investors realize their mistake and common sense causes a buying spree for the overly discounted shares of Groupon.

    Take a moment and read this article I wrote on Groupon and why I believe $15 is a realistic target.

    'BUY' Ratings Mark Groupon As Undervalued (Price Targets Up To $16)

    Disclosure: I am long GRPN.

    Tags: GRPN
    Nov 20 10:14 PM | Link | Comment!
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