Coupons.com takes off following IPO


After pricing its 10.5M-share IPO at $16 yesterday, Coupons.com (COUP) opened at $27.15 and has quickly risen to $29.25, up 82.8%.

The grocery coupon site sports a market cap of $2.1B, or a lofty 12.7x trailing sales.

Prospectus, IPO analysis

Comments (7)
  • doggiecool
    , contributor
    Comments (4932) | Send Message
     
    I would place a paired trade

     

    Place a SHORT on COUP
    Place a LONG on GRPN

     

    If GRPN traded at 12.7 times revenues it would be valued at $30.50.
    Currently GRPN trades at $8.60

     

    GRPN has $1.24 Billion in cash, $0 debt. It also has 11,000 employees. GRPN should be trading at a premium to COUP.

     

    FYI,
    I already have a whooping long position on GRPN. No position on COUP.
    7 Mar 2014, 12:02 PM Reply Like
  • optionsexpert
    , contributor
    Comments (508) | Send Message
     
    Generally these types of IPOs are good swing trades on the short side 3-6 month hold time. GRPN, FB, etc etc. STV traded in $60-$70 range at IPO and look at it now.
    7 Mar 2014, 12:05 PM Reply Like
  • alohabucks
    , contributor
    Comments (7) | Send Message
     
    How long until we can pick up some options on this overpriced overhyped groupon wannabe??
    7 Mar 2014, 04:33 PM Reply Like
  • SpectrumAdvisers
    , contributor
    Comments (4) | Send Message
     
    I think it is important to understand the businesses and make relevant comparisons. The two models are exceptionally different and frankly only marginally have a crossover for competition in the discounting space. Sales and operations are organized differently, they target different businesses and the macro trend and competitive landscape on couponing is very different from that of daily deals.
    7 Mar 2014, 04:33 PM Reply Like
  • doggiecool
    , contributor
    Comments (4932) | Send Message
     
    @spectrum,
    deal = coupon, whats to understand?
    7 Mar 2014, 05:32 PM Reply Like
  • WisPokerGuy
    , contributor
    Comments (1401) | Send Message
     
    Did anyone see the CEO on CNBC? Maybe this is 1999 all over again??? Geeez, the guy even had trouble explaining his own business model. Yikes!
    7 Mar 2014, 10:27 PM Reply Like
  • King Rat
    , contributor
    Comments (1819) | Send Message
     
    You mean a day after the company prices at 16 they sell at 29 and he calls it a victory?

     

    Only a victory for employee shareholders who want to sell.
    10 Mar 2014, 01:04 AM Reply Like
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