Archive for October, 2013
As of our last community update, shares of Inuvo had been stuck in a trading range between $1.10 and $1.20 with very little volume changing hands each day. Since the beginning of October, Inuvo shares have pushed through the upper end of that range on daily volume that is 5x – 10x what was traded in the preceding months and it is readily apparent that Inuvo has garnered the attention of some insitutional, PE or deep pocketed investors who are accumulating shares. The timing (just after the end of Q3) as well as the company’s bullish presentations at multiple investor conferences leads us to believe that the company is performing well and we now think its more likely than not that Q3 numbers will be strong.
We are pleased to see that the company has rolled out the next of its niche vertical owned and operated websites – http://www.finance.alot.com and we are excited that they have chosen the personal finance niche to pursue. The revenue potential for pay per click ads in the insurance, investing and personal finance sector are much larger – often a multiple – of the revenue per click that can be generated in other verticals and we believe that the GrooveVC community can do much to help get the word out and drive incremental traffic to each of these sites. Of course, Inuvo’s margins expand each time a GrooveVC community member uses the search function of http://www.finance.alot.com or http://www.health.alot.com or any of the company’s owned and operated websites.
Remark Media shares have continued to climb higher since our last update, though they have pulled back from the new 52 week highs the shares were hitting towards the end of September. Remarks shares still seem to be most heavily impacted by happenings with Sharecare, in particular those events that make it more likely that Remark may be closer to realizing the value of its near 10% stake. Just over a week ago, it was reported that Sharecare placed the largest funding round in the company’s history, with the Heritage Group investing $15m to bring the company’s total funding to over $91m. The Nashville, TN based Heritage Group is backed by Amedisys, Inc., Cardinal Health, CHE Trinity Health, Community Health Systems, Health Care Service Corporation, Intermountain Healthcare, LifePoint Hospitals, Memorial Hermann Healthcare System, UnityPoint Health, and Vanguard Health Systems. We believe this funding round validates our investment thesis, as Sharecare continues to grow while attracting new industry partners and capital. Accordingly, the value of Remark’s stake continues to increase as investors seeking to get a piece of what might prove to be a hot IPO in a very hot IPO market are increasingly discovering the Remark story.