Fri, Aug 22, 2014, 1:44 PM EDT - U.S. Markets close in 2 hrs 16 mins

Recent

% | $
Quotes you view appear here for quick access.

Angie's List, Inc. Message Board

  • kurwa2013 kurwa2013 Jul 20, 2013 9:54 AM Flag

    Bad Business or Not, Angie's List is Simply Overvalued

    By Michael Lewis

    Angie's List (NASDAQ: ANGI ) appeals to the buyer beware in all of us. The company has made a business out of reviews you can, supposedly, trust. In late 2011, the company debuted on the public markets and has since rewarded investors with a more than 40% return, all while unable to post a positive bottom line. However, sales growth over that same time has skyrocketed more than 160%. While the business sounds innocent enough, a recent hit piece from Citron Research sent the stock down nearly seven points for the week. The question is: Does the exhaustive research report highlight anything that investors weren't already aware of? Let's take a look and see if Angie's List is a stock you should avoid.

    Slam!
    Citron Research is notorious for issuing scathing reports on a wide array of companies from Chinese mid caps to Intuitive Surgical. Opinions vary on the accuracy and integrity of the short-seller shop, but one cannot deny their influential prose and shocking statistics. As a public business, a Citron slam piece is one of the last things you want to deal with.

    The title of Citron's report on Angie's List leaves nothing to the imagination: Bad Idea + Bad Business = Wall Street Fiction. In the piece, the firm argues that, at best, Angie's is worth $6 per share -- a far cry from today's $23 price point. The synopsis is as following:

    Angie's List has a terrible reputation among its customers, both end users and businesses. Customers have a hard time canceling memberships and question the integrity of the listings. Most listed businesses have an "A" grade, and seemingly anyone can apply for a listing without any due diligence on behalf of Angie's List. Bad Business or Not, Angie's List is Simply Overvalued

 
ANGI
8.11+0.02(+0.25%)1:43 PMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.