Gizmo & Jack position trade #1 under new philosophy: AVEA.
Don't really know what is going on with this one, but I picked up some in the 60s today and won't question it. Of course, it tanked toward the end of the day and I'm down, but I'll buy more if it goes into the 50s. Unless I am missing something (and please let me know if I am), this one is fascinatingly cheap. Market cap of around $3.5B is about 50X '99 earnings. But that's not really fair considering the outrageous growth here. $35 million revenue in the last quarter, so if you annualize this number, the market cap multiple is more like 25X revs. Real cheapfor a company in this sector with a growth rate that's out of this world. And if that's not enough, we are talking about a Morgan Stanley IPO, CNBC article about the extreme undervaluation of online advertising firms today, and AVEA's client list of MSFT and Gateway. With regard to MSFT, that means everything MSFT owns (ie. Expedia, etc.) This company also has proprietary advertising solutions for handheld wireless computers as well. This one has been surprisingly overlooked imo and I would not be surprised to see SVNX type movement over the next couple of weeks. When it moves, it will move fast as it demonstrated a couple of days ago when it went from 65 to 80 in a heartbeat. I'm holding for next week along with my DTEC which may just turn into my second position trade. DTEC should be much closer in valuation to KANA than DTEC based on revenues and growth. The fact that its market cap is below EGAN despite having higher revenues, faster growth, and from what I've read, better technology, is something that I don't expect will last. Take care everyone. G&J |
