TrueCar Inc. (NASDAQ:TRUE) A Bright Future?

TrueCare Inc. (NASDAQ:TRUE)

TrueCar Inc. (NASDA:TRUE) tries to transform the car buying experience for consumers and the way that dealers attract customers and sell cars. The company has established an intelligent, data-driven online platform operating on a common technology infrastructure, powered by proprietary data and analytics. Santa Monia, CA-based TrueCar operates  TrueCar.com website. In addition, they customize and operate a platform for affinity group marketing partners, such as USAA and Consumer Reports, financial institutions, and other large enterprises such as Boeing and Verizon. TrueCar enables users to obtain market-based pricing data on new and used cars, and to connect with our network of 13,000 TrueCar Certified Dealers. Two million users have bought a car through TrueCar certified dealers.

TrueCar’s Affinity Partners include USAA, Sam’s Club, Consumer Reports, AAA, American Express, Geico and Farmers.

History

TrueCar Inc. (NASDA:TRUE) was originally incorporated under the name “Zag.com Inc.”. TrueCare originally operated the business primarily as a provider of “white-labeled” auto-buying programs for affinity groups such as USAA. Within the Zag.com environment, the concepts of price confidence using data and analytics presented in an easy-to-digest form was created and launched in TrueCar.com. The TrueCar concept involved gathering data in order to increase pricing transparency on vehicle prices for consumers in an attempt to enhance Zag.com’s services. Ultimately, the two entities were combined to form TrueCar Inc.’s (NASDA:TRUE).

In 2008 TrueCar Inc. (NASDA:TRUE) raised $2.8 million from Zag’s original investors. It received $8.1 million investments from Capital One and Anthem Venture Partners. TrueCar raised another $35.5 million in 2010. In September 2011, TrueCar raised $200 million from USAA, GRP Partners, Keating Capital, Silicon Valley Bank and Capricorn Investment Group. Truecar raised $30 million from Vulcan Capital in 2013. As of 2013, TrueCare Inc. has raised over $200 million in financing since its founding in 2005.

The Numbers

TrueCar Inc. (NASDA:TRUE) has had increasing sales since 2011 when it posted a fugure of $$76.3 million. In 2015 the figure was $259.8 million. True EPS has been negative since 2011 when the figure was a $0.16 loss. Other EPS losses followed and in 2015 the loss was $0.79 EPS.

Seven firms follow TrueCar Inc. (NASDA:TRUE). Three each rate TRUE shares as a “Strong Buy” and a “Hold” while one rates TRUE shares as a “Buy”. Traders should note the short seller figures below.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

2/17/2017
Ticker Symbol TRUE
Last Price a/o 9:44 AM EST  $                    14.40
Average Volume                    639,300
Market Cap (mlns)  $              1,110.00
Sales (mlns) $267.00
Shares Outstanding (mlns) 83.78
Share Float (mlns) 63.3
Shortable Yes
Optionable Yes
Inside Ownership 1.70%
Short Float 28.13%
Short Interest Ratio 27.84
Quarterly Return 9.50%
YTD Return 6.00%
Year Return 129.64%

Can NETEASE INC (ADR) (NASDAQ:NTES) Sustain Its Growth Momentum?

NetEase Inc (ADR) (NASDAQ:NTES) Q4 2016 results exceeded Wall Street expectations for the quarter. Revenue of 12.1 billion yuan ($1.74 billion) rose more than 53% over a similar quarter a year earlier. The online games publisher reported adjusted net income of 4 billion yuan ($570 million), leading to adjusted EPS of $4.30. The EPS rose sharply from $2.56 in the comparable quarter a year earlier.

Analysts on the average were expecting NetEase to report revenue of $1.58 billion and EPS of $3.44.

What supported the growth?

The management attributed the starling quarterly performance to strong execution focused on innovation.

“In 2016, we brought best-in-class products and services to our community and continued to grow our business. As we move through 2017 we will look toward the future, designing products and services that address fluid market dynamics, enabling continued growth and value creation,” said CEO William Ding.

The stop pops following the strong results

Shares of NetEase Inc (ADR) (NASDAQ:NTES) popped more than 14% to $298.73 in the last session following the robust quarterly performance. The stock has gained more than 38% since the beginning of the year, and is up more than 115% since a year ago. Shares of NetEase have oscillated between a low of $130.82 and high of $299.68 over the last one year.

In 2017, investors are looking to see if NetEase can increase or, at least, maintain its growth momentum.

Chinese venture with Google

As part of the efforts to drive future growth, media reports, including by South China Morning Post and The Information, have suggested that NetEase has been in discussion with Google for a joint venture in China. Google is the largest division within the Alphabet Inc (NASDAQ:GOOGL) holding company. Its siblings include autonomous driving technology developer Waymo and cable internet unit Google Fiber.

The NetEase Inc (ADR) (NASDAQ:NTES) Google talks are reportedly about bringing Google Play to China. Such a move would help NetEase reach more international customers with its products by making the games available on Google Play app store. Google Pay is available on Android, which is the world’s most popular mobile operating system.

A return to China

Google pulled its products from mainland China in 2010 in protest over the country’s censorship of internet content. But the company has recently shown that it is willing to return to China, according to South China Morning Post. A partnership with NetEase Inc (ADR) (NASDAQ:NTES) on Google Play could bring Google closer to re-entering China.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

2/16/2017
Ticker Symbol NTES
Last Price a/o, 4:02PM EST  $                      298.73
Average Volume 956,180
Market Cap (blns)  $                  39.63
Sales (blns) $4.95
Shares Outstanding (mlns) 132.67
Share Float (mlns) 129.84
Shortable Yes
Optionable Yes
Inside Ownership 45.00%
Short Float 1.09%
Short Interest Ratio 1.48
Quarterly Return 31.40%
YTD Return 38.72%
Year Return 99.34%

“I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.”

Build-A-Bear Workshop, Inc. (NYSE:BBW) Needs to Keep Building…

Build-A-Bear Workshop, Inc. (NYSE:BBW)

Build-A-Bear Workshop, Inc. (NYSE:BBW) was founded in St. Louis, MO in 1997. Build-A-Bear Workshop, Inc. offers an interactive make-your-own stuffed animal retail-entertainment experience. There are more than 400 Build-A-Bear Workshop stores worldwide, including company-owned stores in the United States, Canada, the United Kingdom, the Republic of Ireland and Denmark and our franchisees operated 86 stores in 14 additional countries.

History

Build-A-Bear Workshop, Inc. (NYSE:BBW) shares were trading below $4 in 2009. However, in early 2015 BBW shares broke out over $22. Today, In May of 2016 the company announced that it was exploring strategic alternatives – which usually means that the firm is looking for someone to acquire them. The news sent shares up 8% on the day. At the time, Build-A-Bear Workshop, Inc. (NYSE:BBW) was rumored to be worth around $200 million.

In October, 2016 Build-A-Bear Workshop, Inc. (NYSE:BBW) reported a 3rd quarter 104% increase in GAAP pre-tax income versus the prior year. Today Build-A-Bear Workshop, Inc. (NYSE:BBW) reported fourth-quarter earnings of $318,000. Earnings were announced at $0.39 – well below expectations of $0.69. Following the news, BBW gapped down from Wednesday’s close of $11.90 to open at $8.75 – below $10 for the first time since 2014. BBW ended trading today at $8.52 – down over 28%.

The Numbers

Build-A-Bear Workshop, Inc. (NYSE:BBW) sales have been flat for years. In 2012 sales were reported at $394.4 million and that figure was little changed in the subsequent years – 2015 sales were just $377.7 million. Earnings per share were at the worst in 2013 when Build-A-Bear Workshop, Inc. (NYSE:BBW) posted a loss of $3.02. Since then BBW EPS has improved each year and in 2015 the figure was a positive $1.61.

Three firms follow Build-A-Bear Workshop, Inc. (NYSE:BBW), two rate the shares as a “strong Buy”, one rates the shares as a “Buy”. Their consensus price target is $20.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

2/16/2017
Ticker Symbol BBW
Last Price a/o 4:00 PM EST  $                      8.52
Average Volume                      85,120
Market Cap (mlns)  $                  144.46
Sales (mlns) $371.50
Shares Outstanding (mlns) 15.45
Share Float (mlns) 14.7
Shortable Yes
Optionable Yes
Inside Ownership 0.30%
Short Float 9.14%
Short Interest Ratio 15.79
Quarterly Return -36.18%
YTD Return -32.00%
Year Return -32.93%

Power Solution International, Inc. (NASDAQ:PSIX) Up 60% Amidst High Drama

Power Solution International, Inc. (NASDAQ:PSIX)

Power Solution International, Inc. (NASDAQ:PSIX) provides integrated turnkey powertrain solutions to original equipment manufacturers in the industrial, construction, agricultural, and on-road markets and offers a complete line of fuel-flexible, low-emission engines. The Wood Dale, IL-based company designs and markets clean, high-performance engines that run on a wide variety of fuels including natural gas, propane, biogas, gasoline, or hybrid systems to meet and exceed applicable environmental standards.

History

Power Solution International, Inc. (NASDAQ:PSIX) was trading above $80 in mid-2014. Today the shares closed the regular trading session up over 64% at $6.24.

In September, lawfirms were searching for clients to take part in a class-action lawsuit that alleged Power Solution International, Inc. (NASDAQ:PSIX) made false and misleading statements and/or failed to disclose that: the Company inappropriately recognized revenue for certain transactions; that the Company lacked adequate internal controls over financial reporting; and that as a result of the above, Power Solutions’ public statements were materially false and misleading at all relevant times.

On February 3, the NASDAQ announced that trading was halted today in Power Solutions International, Inc. at 11:53:45 Eastern Time for “additional information requested” from the company at a last sale price of $7.52. When trading resumes, the stock plummeted and closed the day down over 60% at $2.80. On February 6, 2017, Power Solutions International, Inc. (NASDAQ:PSIX) received notice from the Staff of the Listing Qualifications Department of The NASDAQ indicating that, based upon the Company’s continued non-compliance with the filing requirement set forth in Nasdaq Listing Rule 5250(c)(1), the Company’s securities would be subject to delisting from Nasdaq unless the Company timely requests a hearing before the Nasdaq Hearings Panel.

On February 10, Power Solutions International, Inc. (NASDAQ:PSIX)announced that it has appointed Frazier & Deeter, LLC (“Frazier & Deeter”) as its new auditor to succeed RSM US LLP.

Power Solutions International, Inc. (NASDAQ:PSIX) had been trading in the $3 handle since February 4 – until today when shares soared and ended the day at $6.24.

The Numbers

Power Solutions International, Inc. (NASDAQ:PSIX) sales have been steadily increasing since 2011 when the company reported $155 million in revenues. In 2015 that number improved to $389.4 million. Earnings have been inconsistent. 2013 showed an EPS loss of $1.92, but the next two years had positive per share earnings of $2.22 and $1.32.

Four firms follow Power Solutions International, Inc. (NASDAQ:PSIX), One rates the shares as a “strong Buy”, one rates the shares as a “Hold”, and two rate PSIX as a “Sell”.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

2/16/2017
Ticker Symbol PSIX
Last Price a/o 4:00 PM EST  $                      6.24
Average Volume                    144,480
Market Cap (mlns)  $                    71.32
Sales (mlns) $365.10
Shares Outstanding (mlns) 11.43
Share Float (mlns) 4.8
Shortable Yes
Optionable No
Inside Ownership 58.97%
Short Float 39.59%
Short Interest Ratio 13.14
Quarterly Return -51.74%
YTD Return -16.80%
Year Return -45.17%

GNC Holdings Inc. (NYSE:GNC) Health in Question

GNC Holdings Inc. (NYSE:GNC)

Shares of GNC Holdings Inc. (NYSE:GNC) could use some financial supplements. At the end of 2013 GNC shares were trading above $55, within six months they had declined to under $30 but partially recovered in the second half of 2014. However, since that time the shares have been on a steady decline and today sit just above $7 and have had two bulge-bracket Wall S. firms downgrade the shares to “Sell” and “Underweight”. In 2016, GNC received a total of eight analyst downgrades.

Today GNC Holdings Inc. (NYSE:GNC) reported consolidated revenue of $569.9 million in the fourth quarter of 2016, compared with consolidated revenue of $629.1 million for the fourth quarter of 2015. Same store sales decreased 12.0% in domestic company-owned stores (including GNC.com sales which contributed 4.5% of the decrease) in the fourth quarter of 2016. In domestic franchise locations, same store sales decreased 6.0% in the fourth quarter of 2016.

Bob Moran, Interim Chief Executive Officer, commented, “GNC’s performance in the fourth quarter, while well below expectations, does not reflect the fundamental changes we have made to the business model. Customers are responding well to the new model, which launched in late December and includes simplified, more competitive pricing and new loyalty programs. We are aware that the changes we have made have short-term financial impacts and while it is still in the early days, and it will take time for our investments to bear fruit, we are encouraged by the trends we’re seeing and believe the One New GNC can help the company return to profitable growth.”

Changes to the referenced business model also include suspending its dividend. GNC Holdings Inc. (NYSE:GNC) also does not expect to use the remaining $197.8 million previously authorized for share repurchases in 2017. It is expected that the cash will be spent on reducing the company’s debt.

Eight firms follow GNC Holdings Inc. (NYSE:GNC). Five rate the shares as “Hold”, one rates GNC as an “Underperform”, and one rates the shares as a “Sell”. The ratings are curious given that the analyst’s consensus price target is $11 which is over 45% more than GNC’s current price.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

2/16/2017
Ticker Symbol GNC
Last Price a/o 2:05 PM EST  $                      7.48
Average Volume                2,520,000
Market Cap (mlns)  $                  565.68
Sales (mlns) $2,590.00
Shares Outstanding (mlns) 67.99
Share Float (mlns) 67.96
Shortable Yes
Optionable Yes
Inside Ownership 0.27%
Short Float 22.76%
Short Interest Ratio 6.15
Quarterly Return -43.31%
YTD Return -24.64%
Year Return -69.36%

Naked Brand Group, Inc. (Nasdaq:NAKD) Shares on the Move – Again

Naked Brand Group, Inc. – (Nasdaq:NAKD)

Naked Brand Group Inc. (NASDAQ:NAKD) shares are gaining steadily in early trading on volumes over 5 times the normal daily average. NAKD shares closed Wednesday at $2.56 and gapped up to open today at $2.65 before hitting the inter-day high of $2.89 – a gain of 9%. This mornining the company announced the board appointment of Edward Hanson pursuant to the Company’s Letter of Intent for the proposed business combination with Bendon Limited. Bendon is a global leader in intimate apparel and swimwear known for category innovation in design, and technology. Bendon’s global supply chain is one of its strongest assets, controlling sourcing, manufacturing, and production at over 30 partner facilities across Asia.

On Feb 3rd Naked Brand Group Inc. (NASDAQ:NAKD) shares rocketed over 200% on news of its product line launch “Comfortably You”. The New York, NY-based Naked Brand Group Inc. (NASDAQ:NAKD) designs, manufactures, and sells men’s and women’s underwear, intimate apparel, loungewear, and sleepwear products in the United States and Canada. Bare Naked Group products are available on their ecommerce website, Amazon.com, as well as brick & mortar retailers such as Nordstrom, Bloomingdale’s, Dillard’s, Soma, and Saks Fifth Avenue.

Naked Brand Group Inc. (NASDAQ:NAKD) sales more than doubled from 2015 to 2016 – $600k to $1.4 million. NAKD shares have had negative EPS every year since 2012 when the company posted a loss of $0.11. In 2015 the EPS loss was $23.33, and in 2016 NAKD EPS posted a loss of $10.13. No analysts follow NAKD. 

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

2/16/2017
Ticker Symbol NAKD
Last Price a/o 10:15 AM EST  $                      2.77
Average Volume                1,300,000
Market Cap (mlns)  $                    20.91
Sales (mlns) $1.70
Shares Outstanding (mlns) 8.17
Share Float (mlns) 6.97
Shortable No
Optionable No
Inside Ownership 12.30%
Short Float 1.62%
Short Interest Ratio 0.09
Quarterly Return 181.34%
YTD Return 155.99%
Year Return 6.66%

 

Fossil Group, Inc. (NASDAQ:FOSL) Disappoints and Shares See 2009 Levels

Fossil Group, Inc. (NASDAQ:FOSL)

Fossil Group, Inc. (NASDAQ:FOSL) shares traded over 14 times their normal daily average volume and suffered a 15% drop in price on the back of the company’s earnings release. In 2014, shares of the fashion designer were trading over $120, today they ended below $20 – a $100 drop in three years. FOSL was last trading at these levels in early 2009.

Fossil Group, Inc. (NASDAQ:FOSL) sells its products through department stores, specialty retail stores, specialty watch and jewelry stores, company-owned retail and outlet stores, mass market stores, e-commerce sites, licensed and franchised Fossil retail stores, as well as on airlines and cruise ships. As of January 2, 2016, it owned and operated 99 retail stores and 139 outlet stores located in the United States, as well as 250 retail stores and 131 out-let stores internationally. Fossil Group, Inc. (NASDAQ:FOSL) was founded in 1984 and is headquartered in Richardson, Texas.

The street sales estimate was $977 million – the company posted $959 million which represented a decline of 3% compared to the previous year. Fossil Group, Inc. (NASDAQ:FOSL) reported earnings per share of $1.36, adjusted for restructuring and other costs, which was above the $1.18 consensus estimate. Of some concern was the company’s guidance for 2017. Fossil Group, Inc. (NASDAQ:FOSL) expects 2017 net sales to check between flat and a 6.5% decline, and earnings per share to be between a loss of $0.50 and a gain of $0.20 per share.

Fossil Group, Inc. (NASDAQ:FOSL) has been buying back shares for a while. In 2012 there were 63.3 million shares outstanding but by 2016 there were only 48.8 million. This was part of a good combination as sales and EPS both were showing uptrends between 2012 and 2015. However in 2015 Fossil Group, Inc. (NASDAQ:FOSL) posted sales of $3.23 Billion ($280 million less than 2015) and EPS decreased from $7.12 in 2015 to $4.52 in 2016. In the past week two analysts have downgraded the ratings of Fossil Group, Inc. (NASDAQ:FOSL) to “Underperform”.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

2/15/2017
Ticker Symbol FOSL
Last Price a/o 7:28 PM EST  $                    19.44
Average Volume                1,240,000
Market Cap (mlns)  $                  955.30
Sales (mlns) $3,080.00
Shares Outstanding (mlns) 49.04
Share Float (mlns) 42.26
Shortable Yes
Optionable Yes
Inside Ownership 10.50%
Short Float 20.15%
Short Interest Ratio 6.85
Quarterly Return -42.23%
YTD Return -24.67%
Year Return -56.03%

Groupon, Inc. (NASDAQ:GRPN) Shares Follow RetailMeNot Inc. (SALE) Performance

Groupon, Inc. (NASDAQ:GRPN)

Following on yesterday’s performance of RetailMeNot Inc. (NASDAQ:SALE), Groupon, Inc. (NASDAQ:GRPN) shares rocketed up over 20% after their earnings announcement. GRPN shares ended yesterday at $3.78 and gapped to open at $4.39 before hitting their highs of $4.70 in heavy volumes – almost 8 times the average daily volumes. Groupon, Inc. (NASDAQ:GRPN) shares are heavily shorted with short shares representing 12.5% of the float.

Gross billings were $1.70 billion in the fourth quarter 2016, down slightly from $1.71 billion in the fourth quarter 2015. Revenue was $934.9 million in the fourth quarter 2016, compared with $917.2 million in the fourth quarter 2015. Revenue increased 2% globally, or 4% on a same-country, FX-neutral basis. North America revenue increased 5%, EMEA declined 2% (increased 1% FX-neutral) and Rest of World declined 12% (8% FX-neutral). Gross profit was $369.9 million in the fourth quarter 2016, compared with $371.7 million in the fourth quarter 2015.

Groupon, Inc. (NASDAQ:GRPN) is an online marketplace that offers goods and services at a discount to their members globally. It also provides deals on products for which it acts as the merchant of record. Groupon, Inc. (NASDAQ:GRPN) was formerly known as ThePoint.com, Inc. and changed its name to Groupon, Inc. in 2008. Groupon, Inc. (NASDAQ:GRPN) is headquartered in Chicago, Illinois. Groupon, Inc. is a subsidiary of The Point, LLC.

Sales for Groupon, Inc. (NASDAQ:GRPN) have increased every year. In 2011 the company reported $1.61 billion and $3.12 was reported for 2015. Earnings have not been as easy to come by. In 2011 GRPN had an EPS loss of $1.03 followed by four years of loss under $0.20. Fourteen firms follow Groupon, Inc. (NASDAQ:GRPN). Five rate GRPN shares as a “Strong Buy”, seven rate the shares as a “Hold”, and two rate GRPN shares as a “Sell”.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

2/15/2017
Ticker Symbol GRPN
Last Price a/o 1:53 PM EST  $                      3.59
Average Volume              11,950,000
Market Cap (mlns)  $              2,190.00
Sales (mlns) $3,130.00
Shares Outstanding (mlns) 578.38
Share Float (mlns) 358.59
Shortable Yes
Optionable Yes
Inside Ownership 0.70%
Short Float 12.53%
Short Interest Ratio 4.18
Quarterly Return -8.92%
YTD Return 13.86%
Year Return -7.35%

FunctionX Inc. (NASDAQ:FNCX) Financial Release Confounds Investors

FunctionX Inc. (NASDAQ:FNCX)

Shares of FunctionX Inc. (NASDAQ:FNCX) gapped up over 60% this morning on the back of the company’s financial report. Core revenues increased 125% from the previous quarter but were down over 45% YOY. Revenue per 1,000 visits for December was $21.56 in comparison to $10.13 in September and $6.60 in July. Volumes are exceptionally heavy – trading at over 20 times average daily volumes before mi-day.

FunctionX Inc. (NASDAQ:FNCX) operates several digital media properties including Wetpaint.com which is an online destination for entertainment news for millennial women covering the latest in television, music, and pop culture.

In July 2016, FunctionX Inc. (NASDAQ:FNCX) acquired Rant, Inc which has established itself as a leading innovator in online media consumption. Known for the well-established brand RantSports, Rant, Inc. has since expanded its reach towards the areas of lifestyle, fitness, exercise, entertainment, technology, and celebrities.

FunctionX Inc. (NASDAQ:FNCX) also offers daily fantasy sports experience both directly to consumers and to businesses desiring turnkey solutions through its majority ownership of DraftDay Gaming Group, which is well-positioned to become a significant player in the explosive fantasy sports market. In addition, it operates Choose Digital, a digital marketplace platform that allows companies to incorporate digital content into existing rewards and loyalty programs in support of marketing and sales initiatives.

The company changed its name to Function(x) Inc. in June 2016, a reflection of its commitment to leverage its patented assets in order to become a leader in the booming interactive media space. Function(x) Inc. is based in New York, New York.

FunctionX Inc. (NASDAQ:FNCX) leadership is first-rate and CEO Robert Sillerman has been a successful investor in his personal capacity in some of the biggest media brands. The capital structure is also favorable and Sillerman converted his debt into common and preferred shares to help the company’s financial condition. FunctionX Inc. (NASDAQ:FNCX) had a reverse split (1:20) on September 16, 2017.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

2/15/2017
Ticker Symbol FNCX
Last Price a/o 10:36 PM EST  $                      3.24
Average Volume                      61,600
Market Cap (mlns)  $                      9.71
Sales (mlns) $3.70
Shares Outstanding (mlns) 3.57
Share Float (mlns) 1.15
Shortable Yes
Optionable No
Inside Ownership 0.10%
Short Float 10.42%
Short Interest Ratio 1.95
Quarterly Return -22.51%
YTD Return 12.86%
Year Return -47.69%

RetailMeNot Inc. (NASDAQ:SALE) Better Value than Groupon Inc. (NASDAQ:GRPN)?

RetailMeNot Inc. (NASDAQ:SALE)

At the Beginning of February, RetailMeNot Inc. (NASDAQ:SALE) ended the trading day at $9.05. Today it ended the regular session at $10.35 – a gain of over 14%. Volumes were heavy. Average daily volumes are barely over 300k but today over 1.4 million shares traded hands on the NASDAQ.

Austin, TX-based RetailMeNot Inc. (NASDAQ:SALE) operates digital marketplaces similar to Groupon Inc. (NASDAQ:GRPN). Its marketplace connects consumers with retailers, restaurants, and brands. RetailMeNot Inc. (NASDAQ:SALE) owns and operates digital coupon websites in the United States (RetailMeNot.com); in the United Kingdom (VoucherCodes.co.uk); and in France (Bons-de-Reduction.com, Poulpeo.com, and Ma-Reduc.com).

Today RetailMeNot Inc. (NASDAQ:SALE) announced Q4 2016 earnings and shares popped. In-store & advertising net revenues were up 23%, representing 34% of total core net revenues. Mobile online transaction net revenues were up 8%, representing 12% of total core net revenues. Desktop online transaction net revenues declined 20%, representing 53% of total core net revenues. Overall, Quarterly revenue climbed 17% YoY, to $96.9 million. This number came in at the high end of previous guidance.

RetailMeNot Inc. (NASDAQ:SALE) founder and CEO Cotter Cunningham stated in a press release “During 2016 we continued to make strides toward our long-term goal of becoming a leading savings destination for consumers. While the year had its challenges, we closed out the fourth quarter on a positive note and believe we are well positioned to capitalize on our initiatives in 2017 and beyond.”

Shares of SALE are trading at around a 10% premium to book value and the company reportedly a cash/share figure of $4.91. By comparison Groupon Inc. (NASDAQ:GRPN) trades around six times book value with a cash/share figure of $1.19 – GRPN shares ended trading today at $3.78. Unsurprisingly, GRPN shares are much more heavily shorted that SALE shares.

Credit Suisse resumed coverage for RetailMeNot Inc. (NASDAQ:SALE) about a month ago and rated shares of SALE as an “Underperform” with a $9 price target. Of the five other firms that follow RetailMeNot Inc. (NASDAQ:SALE), three rate the shares as a “Hold”, one rates them as a “Buy”, and one rates SALE shares as a “Strong Buy”. Their price target is $10.50.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

2/14/2017
Ticker Symbol SALE
Last Price a/o 3:59 PM EST  $                    10.35
Average Volume                    307,250
Market Cap (mlns)  $                  429.06
Sales (mlns) $266.70
Shares Outstanding (mlns) 47.94
Share Float (mlns) 43.73
Shortable Yes
Optionable Yes
Inside Ownership 1.80%
Short Float 0.88%
Short Interest Ratio 1.25
Quarterly Return 0.56%
YTD Return -3.76%
Year Return 37.06%