Shares of the all-but forgotten Groupon (GRPN) , a member of my 2022 Tax Loss Selling Recovery Portfolio have been on the move lately. Up 20% year-to-date and, GRPN is now the best performing stock in that portfolio (up 44% since early December inception). The stock jumped 20% on Wednesday alone courtesy of excitement around its stake in SumUp, a UK-based payments company.
SumUp is considering a new round of financing which implies a valuation in excess of $22 billion. The exact size of the SumUp stake is unclear; until now it is not something upon which GRPN has provided much disclosure, but I'd expect that will change. On Thursday, GRPN rose another 4%. Interestingly, GRPN's enterprise value (market cap + debt - cash) is currently a tiny $639 million. The company ended its latest quarter with $477 million or $16/share in cash, and $323 million in debt. Adding intrigue to the story is the current 18% short-interest ratio.
On the other end of the spectrum, I ran across a very interesting name in my double-net screen the other day - stocks trading at between 1x and 2x net current asset value. It's a former high-flying cult stock that has fallen on hard times. That company is none other than Robinhood Markets (HOOD) , which was garnering a great deal of press at this time last year. The company went public in August at $38/share, hit an intraday high of $85 on August 4th, and closed Thursday at $11.61. Shares are down 35% year-to-date, and currently trade at 1.54x NCAV. The company is not expected to be profitable until 2024, based on consensus estimates.
Put this in the category of busted IPO, but it is not one that interest me. Today may be another rough day for the stock, as I write this, shares were down 14% in premarket trading.
