Alloy, Inc. (NASDAQ:ALOY)

CAPS Rating: 5 out of 5

A non-traditional media and marketing services company that targets the demographic segment comprising persons in the United States between the ages of 10 and 24. It operates its business through three operating segments, Promotion, Media and Placement.

Recs

2
Player Avatar NeroSagetrade (91.65) Submitted: 10/24/2007 12:10:05 AM : Outperform Start Price: $8.72 ALOY Score: +20.30

It only took eight years, but the valuation on ALOY has finally reached a level to which I can call this marketing company undervalued. ALOY has been steadily growing revenues in the mid-single digits for the past two quarters but their margins are improving and expensing is down. Particularly of interest, they are trading well below price to book and price to sales valuations. Their forward earnings show a forward P/e of just 12.5 and they have 25M in cash with very little debt. Their long-term chart is a disaster but I cant foresee the stock heading much lower with an earnings warning, and I dont see any warnings in the near future. The valution catalyst is now there, so let it run!

Nero
Sagetrade

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