Groupon

Groupon, the latest darling of every stock promoter and broker, is being promoted as a “technology” company. Hello? Just what technology does Groupon own or develop? Sure, it uses email and the web. So does pretty much any business these days. But that doesn’t get you to be a tech stock, at least in my mind. Google is a tech stock. Apple is a tech stock. Groupon isn’t.

It is a coupon marketing company. That’s all. It has a direct sales force which solicits companies to issue discount coupons, which Groupon then sells via email promotions, splitting the proceeds with the companies. Wash, rinse, repeat (at least in theory). Technology? I don’t think so. It is run by a promoter with a distinctly checkered past. Maybe there’s a sustainable business there, but to me this whole deal smacks of of desperation – Wall Street desperately needs stories to enlist retail speculators (watch this video). Retail investors are chasing risk, desperate to make money as the Fed has crushed savings and investment. (Can you say: “Hi–ho, Silver! Away!”?). Not going to end well.