YuMe (NYSE:YUME)

CAPS Rating: 3 out of 5

Recs

1
Player Avatar TSIF (99.96) Submitted: 5/17/2014 5:45:54 PM : Outperform Start Price: $5.71 YUME Score: +6.16

YuMe is NOT YUM-E with the investors lately. I'm not sure it's a good caps play, but I see some jumping on because I did...not the best play sometimes if I haven't pitched yet, but some of my calls are short lived.

Digital Branding Advertising...Targeted....quite a bit of competitoin out there.

YuMe dropped from $7.00 to $6.00 the last few weeks, and bounced back to $6.40...when it came back down to $6 I "thought" it had technical resistance, but the sell side was too strong and it broken down to new lows. It could be that lower lows are in store, but at a $180M Market cap and 60% off it's 52 week, I'll take a look, (keeping in mind my recent blog on what a stock price "use to be" and how "useful" that is to investors.....NOT.

YuMe is an August 2013, IPO that has had NUMBEROUS 10-20% swings.
Revenue up 30%, 2011-2012, 25% 2012-2013....

The CFO leaving on the last earnings report is sometimes a red flag, but I don't see it as an issue...the CEO would have been...the CFO is chasing another early stage company, and some folks enjoy that atmosphere.

Q1 beat by about $2M. Guidance was reaffirmed for the year, but lowered for Q2, so not the "we missed" and "will miss some more", guidance that has been slamming some tech stocks. Solid cash, $58M. (approx $2 per share). New products, good R&D. P/S of 1.2, P/B only 2.0. EIBTA slightly positive, rare for a company at this growth stage.

Worth a deeper look when I get a chance, at least two more quarters of data should be useful.

Member Avatar TSIF (99.96) Submitted: 7/18/2014 12:34:02 PM
Recs: 0

Banking on this spike. Hard for this to keep up with the S&P in this environment. Think next quarter could also disappoint. Will consider reentry later....

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