Groupon shares dramatically rose on Friday after investor Bill Miller randomly endorsed the daily deal company.
Saying that he liked the stock “a lot,” Miller told CNBC’s “Squawk Box” in an interview that he was “more attracted to stuff that has warts on it and hair and all that kind of stuff.”
The endorsement includes Apple, which took a harsh investor beating after the company was questioned whether or not they could meet innovator expectations. In addition, Miller endorsed the company’s fundamentals, arguing they have taken a back seat to overwhelming market pessimism.
Miller is a portfolio manager of Legg Mason Opportunity Trust fund. Along with his endorsements he brought light to the letting go of Groupon founder and former CEO, Andrew Mason, explaining that he is a “smart guy” and did a great job building the company, but added the business may have been too complex for him to manage.
Trying to dissolve the pessimism surrounding the daily deal site, Miller said that “Groupon’s got a $1.2 billion of cash. They have no debt.” He went on to explain that that “the opportunity [here] is tremendous. Expectations are low. The stock is very cheap.”
He explained his average cost of Groupon stock is around $5 a share.
The Dow Jones Industrial Average closed high this past Thursday – for the tenth straight session. This has not happened since 1996.