Jupitermedia (JUPM, $6.36, -$0.41, -6.06%) shares slid after the New York-based provider of images and information services reported a fourth-quarter net profit of $502,000, or a penny a share, down from $5.44 million, or 15 cents a share, in the year-ago period. Analysts polled by Thomson Financial were expecting a per-share profit of 6 cents on revenue of $33.4 million.
I have owned ACTS in the past and do like the stock. Company is well positioned for growth and has experienced very solid earnings.
My concern, as are many who did not hold past last Q's earnings is margin pressure. I believe ASP for units are estimated to decrease at a 25% clip. ACTS needs to make up the difference in either volume or new product introduction. In my mind, neither of these factors is a give.
Stock does look cheap now and an apx. 7 seems to constitute long term support.
It is tough to knock a stock as cheap as ACTS, but that does not mean this is a slam dunk by any means. More like a Shaq free throw IMHO ...