Nice to pick up those sub $1.30 shares today. Nice close also 177,090 shares @ $1.54. The boys really know how to play the game. Shake the tree and get investors to sell and then run the price right back up....
Short Interest (Shares Short)
Days To Cover (Short Interest Ratio)
Short Percent of Float
Short Interest - Prior
Short % Increase / Decrease
We currently expect revenue to continue to grow steadily throughout the remainder of the year. July unaudited revenue is expected to be approximately $4 million
A month ago today you could have bought this stock for $0.85. Since then it's been as high as $1.75. Closed today @$1.52. Sure seems to me that if you were any kind of investor there was plenty of volume and time to make a nice profit. But there are those who would rather spend their time ragging on the company than making a few bucks. It really does amaze me !!!
Later in the call, Howe added, "Looking forward to the second half of the year, we expect revenue to exceed the first half and profitability trends to continue." The only question is just how high that profitability will be but $0.02 per share is a nice base to build on especially since there are only 24 million shares outstanding to split the net income among.
That being said, considering the healthy gross profit margins of almost 60% last quarter along with total operating expenses declining on both a year-over-year basis and a sequential basis, it's quite conceivable that increases in revenue could accelerate the bottom line fast. All things being equal, a $1.2 million increase in sequential revenue at 60% marginal gross profits could mean an increase of $0.03 of EPS for a total of $0.05 for next quarter. A P/E of say 20 for that annual rate of $0.20 could mean $4.00 per share. Inuvo should report next toward the end of October.
Bare in mind Inuvo is not without its risks. The most obvious of which could be a downturn in the economy that may negatively affect its results. Also as a technology company, like most technology companies, Inuvo has to constantly reinvent itself to stay relevant with the times. What is making big money today may not do so in future periods as Inuvo learned the hard way with its toolbar business. Finally, as mentioned in the filings, the company has a "material dependence on [its] relationships with Yahoo (NASDAQ:YHOO) and Google (NASDAQ:GOOG) (NASDAQ:GOOGL).
During the conference call, CEO Richard Howe stated, "We currently expect revenue to continue to grow steadily throughout the remainder of the year." For July or the first month of Q3, Howe already announced that non-toolbar revenue was around $3.9 million or a quarterly run rate of $11.6 million, already significantly above the $10.4 million level of Q2. The July rate is especially impressive considering it is seasonally one of the worst months of the year. The company's 10K stated, "Online consumer traffic is generally lower during the summer months, as consumers spend less time on the Internet."
Meanwhile, the non-toolbar business has been exploding from $30 million in 2012 to $44.5 million in 2013. It continues, especially in mobile, to explode and will lead to more profitable results going forward. You kind of have to look at the non-toolbar business only to realize what's really happening to the company and especially considering that the toolbar business is sort of masking from the street the fantastic results. This mask is your friend because as "masks" get lifted on overlooked names stock prices tend to adjust accordingly.
In the second quarter, the company's "owned and operated sites and applications" revenue grew 31% sequentially or 156% on a year-over-year basis. Mobile revenues increased 122% on a sequential quarterly basis and consisted of 43% of total revenues. This compares to just 15% of revenue attributable to mobile at the start of this year.
For the second quarter, Inuvo reported a revenue drop of 17% to $10.9 million. Earnings were flat at $0.02 per diluted share. At first glance these results look "just OK" thanks to being profitable but lackluster and uninspiring. One has to take a look under the hood to see just how powerful this engine is revving up.
In the beginning of the year, Inuvo announced in a conference call that it is exiting the toolbar business and focusing on mobile. You know - those annoying ad-based desktop toolbars you used to get tricked into downloading years ago and have (hopefully) learned better since? Yes, it's a dying business (thank God). In 2012, Inuvo's toolbar business was $23.4 million in revenue. For 2013, it was slashed by more than half to $10.5 million. For the first quarter of 2014 it was down to about $1 million and for the second quarter all the way down to around half a million.
Little known internet marketing and technology company Inuvo (NYSEMKT:INUV) has been on a tear since shortly after its fiscal second quarter earnings results and conference call. I say "shortly after" because there seemed to have been a delayed reaction to a fantastic report and outlook. As is often the case with overlooked microcaps, it may have taken the street some time to digest exactly what we have here.
Why Inuvo Is Growing And Why It Will Keep Going
Sep. 9, 2014 2:22 PM ET | About: Inuvo, Inc (INUV)
Disclosure: The author is long INUV. (More...)
•Inuvo’s fantastic results are masked by its winding down of its old business.
•Inuvo’s new business is exploding.
•Inuvo’s EPS is poised to explode.
You just can't ignore the volume that Inuvo has been trading lately. Over 6M shares last week and 3.5M in two days of trading this week. That kind of volume tells me that somebody with deep pockets is buying. The retail trading is only a very tiny part of these big numbers. Previous to last week you would be lucky to see 300,000/400,000 shares traded in a day....and the price went no place. If the price appreciation we've been seeing was being accomplished on those old low volume days I would not pay much attention but big volume does grab my attention.
The Liolios Group Gateway Conference provides portfolio managers, buy- and sell-side analysts, and high net worth investors with a unique opportunity to gain insight into more than 60 small-cap growth companies from a number of growth industries, including technology, business services, digital media, clean-tech, consumer, Internet retail and life sciences. The conference will feature presentations, Q and A sessions and 1-on-1 meetings with management.
60+ presenting companies.
300 portfolio managers, buy- and sell-side analysts, and high net worth investors.
I think we're several quarters away from any buyout. The new business model may have much potential but the company must provide proof to any supposed buyers with a few quarters of good solid numbers.
Interesting to see the Wm.Blair numbers decreasing while at the same time the company seems to be firing on all cylinders. They have made money the last two quarters. Blair has been around for years.
•Investment banks, particularly Morgan Stanley, Goldman Sachs, and JPMorgan have not only left oil trading but have also abandoned the oil marketing business, which used to bring a steady supply of new players to the energy market.
•Individual oil traders (including Dicker himself) have disappeared as well. Dicker speculates around 3,000 traders have left the industry.
•Remaining funds are trend and algorithmic firms with long-term positions already established.
•The big alpha players remaining in the oil trading business are physical commodity, private firms like Glencore, Vitol, and Trifugura among others.
Dicker believes these changes have all but killed immediate speculative activity, which has been good for consumers in the short term, but will be bad for the prospects of cheaper oil in the long term. Without the liquidity provided by these players in the energy market, a crude oil ‘super-spike’ could be in the cards.
The demise of offshore oil drilling could also be a catalyst in Dicker’s mind, not to mention oil supplies going offline in places like Libya, and decreasing in countries like Iran and Iraq. This is leading to an upcoming oil supply crisis he says, and ultimately with liquidity not what it once was, and with the cost of oil now making it prohibitive to develop new sources, ultimately the fundamentals will have to matter again.
“When you have an oil price that’s hanging around $95, you won't see a $10 spike, you’ll see a $40 spike, because that’s what will be necessary to get these guys (oil exploration and production companies) ginned up” in order to produce more crude supply.