Community Update – Inuvo
Sept.30 – We hope that participants of the GrooveVC community took the opportunity to “back up the truck” and fill their coffers with Inuvo shares since our last update. As we discussed in our last update, Inuvo’s stock has remained largely below most investor’s radar and it appears that the company’s recent announcement of a significant uptick in revenue has brought some new buyers into the fold. This announcement released the first week of September has apparently caused some investors to begin establishing positions or adding to existing positions, as the stock has rallied from the new 52 week low set in early September to Friday’s close of 73 cents per share. While we can certainly appreciate that a percentage move of that size in such a short time often results in some consolidation before the stock moves higher, we believe that Inuvo’s stock had been beaten down so much due to investor disaffection and/or apathy that we might not see the kind of pullbacks that often follow such a move.
Regardless whether a pullback occurs, we think that Groove participants should avoid focusing on short term price movements in the stock and instead recognize that Inuvo is only just now reaching the place where investors will be able to see the results of the company’s merger with Vertro showing up in the company’s reported results. While Q2 did include revenue from the operations of the old Inuvo and the old Vertro, we believe that the benefit from the merger’s expense reductions and management’s ability to create value from this combination will be much more apparent in Q3’s results and that investors will see this impact even greater in Q4. Inuvo’s stock remains a bargain at these levels, as we believe the current valuation does not come close to reflecting the potential of Inuvo’s businesses. We believe that investors who are buying at these levels will enjoy substantial gains over the coming quarters as Inuvo’s operations gain further traction and other investors begin to recognize the potential here. The time we have between now and the reporting of Q4 results should be used to buy more shares and introduce the Inuvo story to other investors who can buy shares, download the ALOT appbar, download the Bargain Match browser extension and use Inuvo’s local search offerings (Yellowise or Alot Local) for their daily searching, online shopping, etc.
For those of you who are new to the GrooveVC community and/or Inuvo story, we will have a series of posts by community members over the next few weeks designed to highlight many of the overlooked or under-appreciated aspects of Inuvo. Stay tuned!
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