Archive for March, 2014
A quick note to update members of the Groove VC community on happenings with our two focus stocks, Inuvo and Remark Media.
Inuvo (NYSE Mkt: INUV) has had very little news flow or PR activity since our last update, but we expect to hear from the company soon with the release of its Q4 2013 results. As discussed previously, we believe the company will report a strong quarter in terms of its bottom line, though we do expect to see some contraction in the top line due to the holiday slowdown in web traffic that occurs each year leading up to the Christmas and New Years Day holidays and the impact that has on ALOT and other Inuvo owned web properties.
Remark Media (Nasdaq: MARK) has continued to be a mover and shaker, announcing late last month that the company has acquired taxextension.com. The tax extension business should be quite complimentary to its existing FileLater.com and Irs.com business and could not come at a better time, as most US consumers are starting to file their personal income tax returns. Remark shares have continued to climb and most recently have been in a trading range between $5.25 and $6.25.
Holders of Remark Media shares cannot help but watch the action in the IPO market with great anticipation, as investors continue to bid up the shares of just about every new issue that comes to market. The time for a Sharecare IPO filing has to be drawing near. We would be suprised if that does not occur over the next few months and shocked if it does not happen in calendar year 2014. When it does occur, we expect that Remark shares will get even more attention and have the potential to move even higher than its recent range due to its large stake in Sharecare. Adding fuel to that fire may be a broader movement in the marketplace in terms of valuations for health care related investments, as recent activity suggests that 2014 may see even greater capital flows into the space than the record flows into the space in 2013 –
GrooveVC community members should continue to benefit from operational growth at both Inuvo and Remark and hopefully some increasing investor awareness of the each’s growing business. Neither company has been very promotional thus far in 2014 and we hope to see that change as each has an increasingly good story to tell.