Groupon Inc (NASDAQ:GRPN) Hits One 52-Week Low After Another

[[tagnumber 0]][[tagnumber 1]]When Groupon Inc (NASDAQ:GRPN) announced Q3 earnings last week, the numbers reported marked a slight decline on a year–over–year basis with unfavorable changes in foreign exchange rates shouldering the blame. Had it not been for the latter, the black clouds gathering over the company‘s reeling chart performance would probably have had many more silver linings and the stock would not have crashed big time on Nov. 4 following the release.[[tagnumber 2]] [[tagnumber 0]]At least, that‘s what GRPN‘s supporters believe in. Given how much the stock has lost over the last twelve months, however, one could safely assume that those supporters comprise nothing but a substantial minority of all traders interested in the Nasdaq–listed global leader of local commerce. During the sessions following the earnings announcement, GRPN shares have been reeling off one 52–week low after another. As a result, GRPN hit a new 12–month rock bottom of $2.65 yesterday before closing the session at $2.68 per share on a volume of some 15 million. Considering the the Nov. 4 earnings day resulted in a record–breaking turnover of 84 million, the electrical storm smashing the value of Groupon might now be showing signs of slowing down. Has GRPN‘s descent into the abyss come to an end, though?[[tagnumber 2]] [[tagnumber 0]][[tagnumber 6]]That‘s what both management and stockholders hope for. The former recently made a few changes within the BoD, including the appointment of COO Rich Williams as the new CEO with its predecessor stepping down to a Chairman position. Yet, investors seemed far from enthused with the changes, most probably due to the fact that no external players were brought into BoD‘s existing pool of members.[[tagnumber 2]] [[tagnumber 0]]Although Williams‘s name is no new to Groupon‘s management, plans for a major overhaul in the company‘s business have already been announced. Putting tiny details aside, the company‘s new strategy seemingly relies upon the idea of ramping up advertising in order to attract new customers nationwide and refraining from further expansion overseas, at least for the time being. Just like any other investment decision, this one also has its pros and cons. If successful, however, it could bring the company the fresh cash flow it has longed for for so long. Yet, even the best–case scenario would not yield immediate results, the implication being that the company will have to put up with deteriorating bottom line in the meantime.[[tagnumber 2]] [[tagnumber 0]]Speaking of the latter, it‘s not currently clear if Groupon will have to resort to raising new capital. As of Sep. 30, 2015, the company had stashed away almost $1 billion of cash and management might use part of this cash in implementing new goals. But when you take into account a/ Groupon‘s payment obligations within the next twelve months and b/ its thin working capital balance, then a change in GRPN‘s capital structure seems imminent sooner rather than later.[[tagnumber 2]]