Community Update on Travelzoo and Inuvo

June 8, 2012 at 9:07 am Leave a comment

Travelzoo Update – some interesting developments with Travelzoo this week, in particular the success of the Travelzoo model exhibited by its Asia-Pacific licensee

http://finance.yahoo.com/news/travelzoo-asia-pacific-launches-local-140000359.html

Also, some interesting commentary, reminding shareholders of the likelihood that Travelzoo remains in play –

http://seekingalpha.com/article/643901-the-auction-of-travelzoo?source=yahoo

Travelzoo continues to look, walk and talk like the class of the deals space, in every regard except its valuation.  We continue to believe that this space is under-appreciated generally and that Travelzoo offers the greatest near term  potential for gains in either an acquisition scenario or simply the emergence of more investor love for the space.

Inuvo Update – in last month’s update we encouraged community participants to jump at the opportunity to buy Inuvo shares at the ridiculous prices offered in mid – May following the Q1 report.  Many of you sent notes to us that you obliged and we were particularly glad to  see you bringing new investors into the community.  It appears that we were not the only one’s buying –

http://www.nasdaq.com/symbol/inuv/sec-filings

For those who are counting, that is ll separate Form 4’s filed since the end of May, representing multiple open market purchases by CEO Peter Corrao, BOD chairman Richard Howe and top shareholder Charles Morgan among others.  These are multiple purchases over several trading days and it should be noted that many of the purchases were at levels much higher than where Inuvo is trading today.  This is quite likely the only window that the executives and board members of Inuvo will get to buy stock on the open market before the first full quarter of the combined Inuvo/Vertro results are reported and it appears that they are jumping at the opportunity to buy at these levels. This is not surprising, as it appears that Inuvo’s operations are starting to gain momentum, with the company’s core growth machine (the ALOT services) growing its user base by 9% since the start of Q2 –

http://finance.yahoo.com/news/inuvo-announces-increase-alot-appbar-124500238.html

Even more encouraging than the 9% growth in two months was CEO Peter Corrao’s indication that this momentum puts the company on track to reach the 10 million user milestone by year’s end and the implications such torrid growth has for the company’s display advertising and other lines of business.  This is a wake up call Groovers – Inuvo management is doing what we have expected them to do.  This is not widely known or appreciated by investors. It is unlikely that the Inuvo story will be able to stay below the radar for much longer, as the report of the results for the current quarter will bring Inuvo to the attention of many new investors. At this morning’s trading range of 65 – 70 cents per share, Groove participants can still buy at levels that we believe will prove to be ridiculously cheap by year’s end and we note that this is 15-20% below the levels of recent insider purchases. This is a wake up call Groovers – the time to buy is now and it is unlikely we will see these levels for much longer.

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Inuvo Update – Buying the Sell-Off Inuvo Update

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