11:43 GRU Gurunet -- New High Profile (14.20 +1.05)
A recent IPO that continues to show momentum is GuruNet, which is making another 52-week high today. Most search engines display a long list of links to other Websites. However, GuruNet's "answer" engine automatically displays relevant, narrative responses to a user's query without requiring the user to review a list of hyperlinks offered in response to a query. Its answer engine also includes tabs that provide other related information in various formats such as charts, graphs and maps. Once downloaded, a user working in any e-mail, spreadsheet, word processing, database etc. need only "alt-click" on a word or phrase within a document and the co's answer engine will access its online library. Also, it analyzes surrounding words in context for a more accurate response. For example, Ford Motor Company is different from Henry Ford or Harrison Ford... This IPO priced with little fanfare last October at $5. Scaring investors was that the co is not profitable, has less than $500K in annual sales, its prospectus disclosed a going concern warning by its auditor and it was underwritten by lower-tier firms.... Nevertheless, momentum traders have picked up the name for its strong growth (but on a low base). For 9 mos ending Sep, sales were $117,000, up 500% yoy. Also, the co recently launched Answers.com, a site-and-software combination providing instant reference answers rather than lists of search engine links. It's tough to be overly confident in the company fundamentally, but momentum traders should keep it on the radar. Mkt cap $65 mln, float 3.7 mln, avg vol 167K. |
