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Groupon Can Yield 10% on Solid Earnings

Online deals company Groupon (GRPN) will report second-quarter earnings after Wednesday's market close. Unlike in previous quarters, the stock, which has risen more than 24% over the past month, no longer seems like a raw deal. Also, there's likely 10% more premium to be had on solid earnings results.

The company is pending tons of money each quarter to grow internationally and to shore up its core deals business with merchants. This means...