Stock Picks from the Pros.
Top Tech Takeover target
By James Altucher
Stockpickr.com
biz.yahoo.com
(James Altucher, founder and CEO of Stockpickr.com, author of the book, "Trade Like Warren Buffett", and partner at Formula Capital)
UNTD mentioned in the article.
From the article:"...United Online (UNTD):
What!? A declining, old school, dial-up Internet service provider? Most people don?t realize that United Online has quietly been building one of the largest social networks around, Classmates.com. All of United?s profit growth comes from Classmates.com. Also, United?s cash flows are immense. Let?s look at the basic numbers: A $932 million market cap and $162 million cash in the bank with no debt, giving it an enterprise value of $770 million. With operating earnings of $154 million, United trades at just five times cash flows.
The situation reminds me of Ask Jeeves which was trading for seven times cash flows right before Interactive Corp. (IACI) bought it for a 20% premium. The Classmates.com asset is too huge to ignore with traffic doubling every year. Consequently, United?s content and media division posted a 33% revenue increase when compared to the year ago period in its most recent quarter. Additionally, United pays out a 5.7% dividend, making it the highest yielding tech company that I track...." |
