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ВСЛК Message Board

  • investora2z investora2z Sep 12, 2013 9:19 AM Flag

    A bit stable..

    The stock has done well over the last few days, and the volumes have been better. The ten day volume average is higher than the three month average. So it may be recovering from the post earnings crash, and may enter a period of range bound movement. Many more days of stability are required to confirm this. A recent article on seekingalpha had given a target of $33 for the stock. Interestingly, the 52 week high of the stock is also around $32. The author was bullish on the stock and had summarized by saying that 'ValueClick is a quality business, which is generating a lot of shareholder value for both short and long term. The company is being managed, as probably any private equity investor would have managed, using cash to make strategic acquisitions and share buybacks. Stock correction due to a temporary weakness is giving a good opportunity to invest'. For the short term, however, the company needs to beat its guidance for the third quarter and the guidance for the full year. This is because the last two earnings have dented the sentiments, and it may be difficult for the stock to cross $25 even if the current recovery lasts a bit longer. It needs to remain dynamic, and alive to opportunities in other segments. Social media sponsorship is an emerging field, with players like IZEA (IZEA) doing well. Looking in isolation, the stock is reasonably valued with a trailing P/E of 17.45 and forward P/E of 11.52. The price to sales and price to book are 2.4 and 2.8 respectively, which is reasonable considering the other metrics. The PEG is 0.99, which indicates good prospects for earnings growth over the next few years. The debt is around $102 million and the cash is more than $127 million. So it is not that bad, but needs a dose of good news to get a bit of positivity going.