I’m glad to see that [t]MCHX[/t] cleaned up their balance sheet. Absent a quick and unexpected turnaround in online advertising, I don’t see much upside on the short-term, though I like the company on a long-term basis. The company has a tangible book value of $2.75. Its probably a screaming buy in the $3.00 to $3.25 range.
Marchex Financial Guidance
“Due to current economic conditions, some of our customers are experiencing challenges with their businesses and balance sheets. As it is difficult to predict the impact this will have on our business in the near term, we believe it is prudent to refrain from issuing 2009 guidance at this time. However, we remain confident that Marchex is well-positioned to win market share in local online advertising in 2009 and beyond,” said Horowitz. “Marchex has a strong balance sheet, no debt, and the company is generating cash every quarter, which we anticipate continuing to do throughout this year.”
A few interesting statistics from the fourth quarter press release:
Operating earnings before interest, amortization and stock based compensation:
2008 (fourth quarter): $5,520,833
2007 (fourth quarter): $5,269,129
2008 (full year): $22,612,878
2007 (full year): $24,040,205
Per share (disregarding dilutive securities):
2008 (fourth quarter): $.16
2007 (fourth quarter): $.14
2008 (full year): $.64
2007 (full year): $.64
Shares outstanding at December 31, 2008: 35,097,782
Shares outstanding at December 31, 2007: 37,735,791
Press release Q4 2008 |
