Diamonds and Dogs
04/02/12Groupon Inc. (GRPN)
Groupon the company based around saving consumers money; couldn't save themselves today, down 16.89% at $15.28. Groupon's fourth quarter earnings were cut by $22.6 million, which figures to be around 4 cents per share. Furthermore, the law firm Federman & Sherwood has initiated an investigation regarding a possible breach of fiduciary duty. Federman & Sherwood, along with their auditor found weakness with Groupon's reported revenue and earnings for fourth quarter 2011. The company still however reaffirmed its first quarter revenue estimates between $510 million to $550 million. Maybe, Groupon would be able to bring in some new investors by offering a coupon on their website to save 16.89% on their stock.
Avon Products Inc. (AVP)
Avon added a little extra make-up today, and is looking beautiful, up 17.20% at $22.69. Fragrance maker, Coty Inc. offered Avon $10 billion to take them over, this would compute out to roughly $23.25 per share. Avon immediately rejected the offer stating it was stingy, although Avon's worth after Friday's close was around $8 billion. Coty responded by saying that it would be willing to up its offering price, and does not want to have it be a hostile takeover. The price per share of the offering as well as Coty's interest in raising its offering has be the driving factor in the large increase in price today. It seems that the fragrance maker doesn't want to just smell good but have the make-up to look good as well. What better company to attempt to buy then Avon; one of the most well-known names in the make-up and beauty product industry.