Why Groupon Is About to Expire

NEW YORK ( TheStreet) -- As we are now approaching the peak periods of vacation season, I have begun to look at my investment portfolio for inspiration. While that can mean a lot of things -- not the least of which involves narrowing down my list of affordable destinations -- in the process of searching for some possible deals I was drawn to the idea of using Groupon ( GRPN).

I mean why not? My wife swears by it. In fact, for Father's Day she surprised me with a local auto-detailing voucher. The service came to my home to clean my vehicle and did a phenomenal job! When it was all done, my car looked brand new. The detailer asked if I would recommend them to a family and friend and I said absolutely. However, I wouldn't dare recommend Groupon's stock -- at least not to friend.

Take a look at the graph below. After all, since we are talking about vacations, the chart tells me that I should be skiing down a slope in Colorado instead of climbing mountains in West Virginia. While both are beautiful states my portfolio favors mountain climbing.

The stock has been in a freefall ever since reaching its six-month high in February of $25.84. Since then it has lost 67% after closing on Tuesday at a price of $8.31 -- with no meaningful signs of slowing down. It seems that investors are beginning to realize that while Groupon is indeed a nice concept, it's just not a sustainable business.


As it seems to be making a news 52-week low in each session, the only question is, how much time does it have left? Will it make it to another year?

As with Facebook ( FB) before it, Groupon really had no discernible business to suggest that it was worthy of its valuation - yet it nonetheless reached as high as $31 a share.

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