Spin it however you want but I for one am tired of the "Socialize the risk and privatize the profit" mantra. Also as a taxpayer I'm tired of buying ivory back scratchers for these undeserving folks.
First, as an investor this is exactly what I want to hear from Angie's List. Good for them for striking a deal that helps offset expansion costs.
Secondly, why don't you start by telling the entire story. They won't give back? Are you JOKING?Angie's List has spent years rehabbing the east Washington St corridor that was useless, abandoned and rundown. Crime was rampant in that area for YEARS before they started their reconstruction. And they didn't even tear down the buildings. They the character and culture of the area and just renovated the insides for business use. The old abandoned Firehouse still has a fire pole and firetruck inside to preserve the roots of the area. The Ford plant that they plan to renovate is over 100 years old and has been generating almost no tax revenue for the city for decades.
Angie's List will invest $23M of their OWN money into the project which includes a stipulation that they will add 1300 new employees in the next 4 years with an average wage of $23 per hour, and there are clawbacks if they don't hit that mark with money in escrow. They are also building a parking structure which is badly needed in the area for up to 1500 spaces, 500 of which can be used by the city if not used by Angie's List.
The properly taxes alone would add about $1.2+million per year to the city FOREVER. And that isn't even including revenue from well over 1000 new employees, many of which are expected to live in Marion County.
So even if Angie's List was sold or went under the city would get a vastly improved building that can be a pillar of new business development in the area and a lot of the money back anyway.
This is a good deal for Angie's List but long-term this is a SWEET deal for the city and tax payers.
Do some homework and get your facts straight.
while memberships slated to growt by 20%. True that growth has slowed a bit, but still going at a strong pace vs most companies. All this while ANGI has turned the corner to profitability. In fact, according to the EBITDA numbes, they should post $.40+ non gaap EPS(Net Income, plus stock based compensation & amortization). No way the stock shouldn't be feteching a much higher price ! Tack on a 25 PE to the non gaap EPS number for 2015, and it takes you to $10. Stock is just being massively manipulated.
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You mean just like every other founder - Bezos, Zuck, all of them? They have extracted BILLIONS from their companies. And many of them are not profitable. Instagram, Twitter, Zynga, Box, Blackberry, Zillow, Pandora - how many companies are NOT profitable and you think their executives didn't sell any stock?
Who would fault any founder from liquidating some of their holdings after an IPO?
The last time she sold anything was June 25th 2014. So actually she is NOT selling and in fact many directors are BUYING.
This Localzz has 1000+ Brands!
I live here in Indianapolis where Angie's List is located. Angie Hicks has a net worth of $50M and yet here she comes begging the city taxpayers for $18M. Last night the CCC sent her proposal back to a committee to do further research on the matter. What does it say when she won't even back her own company? GLTA
Yeah, it's definitely being consistently pushed down, but I'm confident that the stock we will see $10 within 6 months.
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I know of 5 companies in my city that have creates fake reports to make themselves look good on Angies list. How many in other cities. Any company can create false reports to make them look good, I will NEVER use this service.
The more I think about it, the more I believe analysts will be mentally adding back stock based compensation & amortization to get to non gaap EPS(despite that the company doesn't do that) and raise targets when noting non gaap EPS is actually being guided for $.40+ for 2015. Also although the naysayers are pointing to decreasing membership revenues yoy, Service reveunes are going up substantially(28% yoy for the Dec qtr), and they now represent 80% of total revenues. Actual number of memberships is expected to grow from 3M at the end of 2014 to around 3.6M in 2015. That's an increase of 20%.
Bottom line is, advertisers don't care how much in revenues ANGI is getting from their members. All they care about is, that memberships are rising. Even with the lower marketing expenses, memberships are expected to rise nicely in 2015, and advertisers are likely to continue doing business.
Naysayers are pointing out that average revenues/qtr will not be growing from the Dec qtr 2014, in 2015. However when you take a deeper look, service revenues are slated to rise by 20%+, while membership revenues are expected to be flat to down. What this does, when combined with decreased marketing expenses, and decreased G&A expenses vs last year is, give ANGI a profit for the first time in 20 years !
My opinion is, investors and analysts will be speculating that ANGI has likely turned the corner to be a consistantly profitable business, and will continue to grow earnings in 2015 & 2016. The stock price should follow in an upward trend to the $10 area by mid mid year IMO.