Bankrate (NYSE:RATE)

CAPS Rating: 2 out of 5


Player Avatar TSIF (99.96) Submitted: 12/1/2011 10:35:18 AM : Underperform Start Price: $18.86 RATE Score: +5.40

Simply riding down the short squeeze on Bankrate. I missed the entry on a few of the higher volume equities, but so far hit Bankrate at the right time. Bankrate IPO'd at around $15 and has held up well. Besides a few foray's to $14 the majority of it's time has been higher. The run from $16 to $21, however, has been unwarranted and has been the result of shorts piling in early when there was fresh IPO volume and getting caught on low volume as the hype died down. I like to use Bankrate occasionally when reviewing finance options, but it's something that I don't have occasion to do on a frequent basis and the advertising model is tepid at best in this economy. The 23 Million shares in it's IPO included about 3 Million by insders who are probably enjoying their new toys. I'm not going to do a full analysis on this play as it's a short term call on a spike and data on an IPO requires more digging than I'm inclined to do at this point. Overall, P/B, margins, and earnings look typical for an IPO internet based equity....typical being too high.

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