Inuvo Reports Strong Q3 & Launches New ALOT.com

November 7, 2013 at 10:05 am Leave a comment

Inuvo announced a very strong Q3 this past Thursday, producing $14.5m in revenue and delivering $680k or .03 per share in earnings per share. Inuvo shares have pulled back about 10% since the report and we believe this is likely due to some investors hoping to see top line revenue of $15m+ in light of comments on the Q2 call that indicated a $5m+ revenue production in July. We believe investors taking profits in Inuvo at these levels may be missing the forest for the trees, as we believe Inuvo management has wisely kept its focus on maintaining profit margins while growing the company’s mobile reach. We think investors would do well to focus on that bottom line and the fact that the company still managed to achieve 10%+ SEQUENTIAL revenue growth while expanding its mobile reach. Additionally, we note that the company’s investments in pursuit of the higher growth opportunity that mobile represents is starting to pay dividends. a fact that we expect to increasingly put the company on new investor’s radar screen.

As of Tuesday’s closing price of $1.54, INUV is essentially trading up about 50% from the price it was trading at ($1.05) when we first introduced Inuvo as one of our focus stocks. While it is always tempting to take profits when you have a stock trading 50% higher than when you acquired it, we think it would be short sighted to sell any Inuvo shares at this point. We believe the stock will hit a new 52 week high before the end of the year and that investors will start to show more interest as the stock trades north of $2. We believe selling Inuvo shares at this point in time is leaving ALOT of money on the table.

Speaking of ALOT of money, Groove community participants should take every opportunity to use the new www.Alot.com website for searching. Remember that Alot.com’s websites have a very high margin Google search feed and all ad revenue that is generated for Inuvo by these search ads is 100% profit for Inuvo (since they did not have to pay to acquire Groovers as they do for most regular consumer users of these sites). Also, with the holiday shopping season almost upon us, do not forget to use the Bargain Match website (www.bargainmatch.com) or download the bargain match browser extension (click here and get $10 just for trying it out!) that allows you to earn cash back on every purchase from nearly every major retailer in the US. The 2-10% back from any purchase that you earn is typically how much that retailer pays to Inuvo also (if you get 2%, then Inuvo earns 2% of what you bought too), so in the aggregate the use of BargainMatch by Groove members and others we recommend it to can make a big difference to Invuo’s bottom line when they report their fourth quarter in a few months. We already see indications that the Partner Network side of the company’s business is gaining very real momentum as the market for mobile ads grows in size and profitability, why not take every opportunity to help the “Owned and Operated” side (Alot.com and BargainMatch.com)grow by using each of the services and showing others how to do it too? Now that the company is solidly profitable, every additional dollar of ad revenue or bargain match shopping revenue generated goes straight to Inuvo’s bottom line as profit and that eventually improves YOUR bottom line as the stock price moves up to reflect the higher earnings. If Inuvo can report even one more penny of profit for the next quarter, the impact on Inuvo’s trading price would be significant. We already believe that Inuvo will be trading over $2 before we get too far into 2014, why not tell friends and associates to buy Inuvo at $1.50 (it is trading at $1.41 this morning – great buying opportunity) and use Alot.com and BargainMatch.com over the next few months to help push Inuvo to record earnings? As the stock value pushes past $2, everyone you recommended it to will be up 33% and have every reason to use the services more, tell others to use it more and the snowball keeps rolling. I have personally told 5 people to buy the stock (it was at $1.150 – $1.20 then) in the last 90 days and those guys are all pretty happy about their new stock and using ALOT.com’s websites on a regular basis. Keep on searching, shopping and telling others how to use Inuvo’s Alot.com and BargainMatch.com and enjoy the ride as other investors start to discover the Inuvo story.

 

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