Inuvo Still Cheap But Moving Higher While Key Insiders Are Buying

June 13, 2014 at 12:10 pm 1 comment

Shares of Inuvo have been steadily moving higher over the last week on higher volume. Insiders have been buying more shares on the open market, including CEO Rich Howe (10,000) and BOD chairman Charles Morgan (25,000). Inuvo trading anywhere below $1 is quite cheap relative to its growth trajectory, as the company’s growing mobile business and its increasingly profitable ALOT business offer the potential for the company to grow revenue and earnings at over 100% year over year. Owning a share of this growth and the earnings stream it is producing costs less than 10x what is likely to be this calendar year’s earnings. It is rare to find a small cap growing at the rate of Inuvo that actually has earnings, is growing at a triple digit rate and has a single digit multiple. It is difficult to imagine a scenario where Inuvo continues to trade in that range for very long. 

Even if the stock advances back to the $1.10-$1.20 trading range it found before concerns of NYSE delisting dragged it below $1, we believe that Inuvo will increasingly be perceived as a prime takeover candidate due to its very low valuation for a profitable company with a 12 month revenue run rate over $50 million. An acquisition of Inuvo at $3 per share would still be less than 1.5x revenue, literally a steal for many other small cap companies in this space that have no earnings and trade at large multiples of their revenue. Such a deal would give investors at today’s prices a gain of over 200%.

By any measure, Inuvo remains dirt cheap.  Groove investors would do well to load up while you can still do it below $1. 

Advertisements

Entry filed under: Uncategorized. Tags: , , , , , , , , .

Remark Media (MARK) Hits Multi-Year High Inuvo – the Profitable Small Cap Mobile Advertising Company

1 Comment Add your own

  • 1. Michael Pusateri  |  July 16, 2014 at 12:57 pm

    living.alot.com looks great and some new apps released in google play. We can help Alot.com by liking them on Facebook!

    Reply

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Trackback this post  |  Subscribe to the comments via RSS Feed


Enter your email address to follow this blog and receive notifications of new posts by email.