Happy Birthday GrooveVC!
One year ago last week, we went live with the GrooveVC website and presented the first stock recommendation (Vertro – Nasdaq: VTRO) to our community. One year later, Vertro stock is trading up 74% from where it was trading when we first introduced it (23 cents adjusted for r/s = $1.15 price when introduced). More importantly, we feel that management’s actions over the past year have put Vertro in the position to grow substantially from where it is today, both in terms of its operations and its stock valuation. From an operational standpoint, we are extremely pleased with where we find Vertro today and expect to see Vertro complete its first full year of profitability soon. We expect that we will soon see the stock price move to better reflect the company’s results and begin to reflect Vertro’s future prospects. For this reason, we feel that investors currently holding the stock should continue to hold their shares and those with the ability to purchase more would do very well to do that at current prices. As more investors become familiar with the Vertro story, the stock will trade substantially higher than today’s prices. We believe that wider investor recognition of the Vertro story will be coming soon.
Since inception it has been our intention to periodically introduce new investment opportunities to our community. These investments will share the same characteristics as our first recommendation, in that they are small cap companies, they are undervalued relative to their assets and/or prospects, their results are driven by products sold to consumers and they are small enough that a group of several thousand consumers using their service and telling their friends to use it could make a difference. We have received several recommendations from community members of stocks that fit this profile and we are currently in the due diligence process with several potential additions. We expect to complete this process over the next 30 days and introduce a second stock at that time.
Please note that we do not recommend selling shares of Vertro to invest in our new recommendation. We could not be more bullish on the near term (3 – 6 months) prospects for Vertro and thus we believe investors should instead seek to invest additional capital in the new company or seek another source of funds. We will continue to focus our efforts on Vertro in addition to any other companies we introduce to the community.
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