Following a meeting with Angie’s List’s management, Stifel Nicolaus thinks that the company has started focusing on profitability along with growth. The firm believes that investors will bet that the company’s EBITDA margins will advance significantly. Stifel recommends aggressively purchasing the stock.
"The company, which has headquarters in Indianapolis, has hired Bank of America Merrill Lynch to serve as its lead underwriter. Allen & Company, Stifel Nicolaus Weisel, RBC Capital Markets, Janney Montgomery Scott, Oppenheimer & Company, ThinkEquity and CODE Advisors are also participating."
Interesting that they said: " believes that investors will bet that the company’s EBITDA margins will advance significantly." and not " believes that the company’s EBITDA margins will advance significantly."
Why would they even say EBITDA, when there is almost no interest expense, there are no taxes as they have tax loss utilizationfor the next $200 million of earnings (which they'll never get to) and they have almost no depreciation or amortization. they could have said earnings just as easily but used this obtuse and ,in this case, meaningless term. 20% insiders, they'll sell soon.