Internet Brands, Inc. (INET)
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Quality stock, good book value, plenty of cash.
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Although the current tide is pitching everyone into a frenzy - GOOG reported numbers that beat the market and cooled the crazy mad proclaimers that web advertising was down. Entirely the opposite.
The one thing that I would say that INET, like GOOG is demonstrating is that, like any portfolio, having diversity helps weather rough patches.
Considering how this company has been handling this most severe rough patch in our lifetime, I'd say that being heavily bullish on INET is a safe bet.
The company has a strong handle on the same marketing money that powers google. I didn't realize the company had so many sites.
And while making money from advertising is showing no down swing, at all, they, INET, also make money from other revenue streams.
If they do continue with their current corporate charter, they'll be a strong mid field runner, absolutely. If they expand their charter ala google to explore a few other endemic avenues, they could be poised for significant success. Whatever the case, no downside here.
The pricing is also poised for readjustment following tomorrows 3rd quarter financial numbers.
You want to know my position, fool?
Strong Buy.
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http://www.fool.com/investing/high-growth/2008/08/18/5-stocks-under-10.aspx
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owns a lot of consumer sights, and when the economy picks up, more consumers will spend, and will look on there sites more often...that equals more revenue.
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The company has a solid lock on a number of consistent and growing revenue streams. They've diversified their war chest to include some nice properties - ModelMayhem.com for example.
Having no debt, and being on a path of earning 100m + this year is phenomenal.
The management team doesn't seem too spirited so while this may not have "explosive" growth written on it, but its established a solid foundation as a cash cow.
If they don't fumble their BBS and R&D adventures, this company is going to make either a nice acquisition or maintain ever growing yoy profits.
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Internet Brands business model in a nut shell. Buy up a large portion of Google's revenue stream.
According to Google's 2008 1st quarter report:
Google Network Revenues - Google’s (partner sites) generated revenues through AdSense programs, of $1.69 billion, or 33% of Google's total revenues,
Who are these partner sites that represent 33% of Google's total revenue? The same sites that Internet Brands is buying. They are buying up websites that are ranked in the top 100,000 of all websites globally. So how much does Google pay these (partner sites)?
According to their 2008 1Q
Google's TAC - Traffic Acquisition Costs, the portion of revenues shared with Google’s partners, increased to $1.49 billion in the first quarter of 2008.
So would you buy Google stock at Inets evaluation?? No brainer.
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I think this is a great stock for under 10 bucks, Its not doing that well because of the sectors in which it has it's websites in place but once the housing and auto industry pick back up this stock is bound to blow!
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Screen: 2-stars, little price change in last 26 weeks, P/E > 20.
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director dumping shares
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Carsdirect.com sell a lot of cars without keeping any inventory.
Nice business model and should go up in future.
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The buying up the forum communities, well this reminds me of the early 1990's and all those BBS hobbyist sites. Many of the latter tried to become Internet providers and failed. INETS business model is better left for hobbyists.
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This company was my idea ten years ago, except I went broke in 2000. I think this time around I will leave it to the professionals in here in Pasadena. Oh yeah, and I frequently dine in the same resturants and the good people of this company.
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I don't know all the details but they seem to have potential.

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