You said the following garbage..
As I said before, regardless of investor psychology, trends, or charts, all that matters in the long run is whether a company makes money. Stock is ownership and entitles you to a share of the profits.
In the past hour, GOTO announced that they beat estimates by 5 cents and that they will join FWHT in being profitable for the rest of the year. biz.yahoo.com
That is good enough news per se, but the real bonus is that they are in an industry where marginal costs are rather slim. When a restaurant doubles their sales, their profits do not nearly double because they have to cover the costs of additional food, waiters, rent, etc. However, when Findwhat and Goto double their advertisers and clicks (sales), their profits almost do double. Why? Because their marginal costs associated with the increased business are much less than traditional firms with significant cost of good sold, etc. FWHT and GOTO need only to hire more staff and expand their servers. Not cheap, but on a percentage basis it pales in comparison to the restaurant example. Look at Findwhat's quarter-by-quarter comparisons to see what I mean. Huge growth in revenues with very mild growth in costs. They are relatively insulated from the decline in online spending because they are pay-for-performance, which will never go out of style. That is why average bid prices have increased while banner advertising prices and clickthroughs have declined. With the incredible revenue growth these companies continue to experience, profits will shoot through the roof. Look for both of them to continue to exceed forecasts.
GOTO is a good deal at 20 and FWHT is an absolute steal at 2. I look for GOTO to be valued around 30 by year end and FWHT to rocket to 10 or so. Mark my words. Market leaders, profitable business models, rapid revenue growth, stagnant costs. I spend thousands each week advertising with these companies, so I have somewhat of an "insiders" take on things. I have watched them grow and improve rapidly over the past couple of years. It is a win-win situation - for them, and for the advertisers.
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ryan, goto is a pos. way overvalued and insiders are selling the stock like there is no tomorrow. this pos search engine is in the business of selling stock and not your imaginary best business model in the world. there is no way in this world that pos findwhat will be 10$ by years end. mark my words.
ALL in LOL format. againa, and again..goood luck to you. |
