Zacks Research Loves the Groove Portfolio – INUV & CVSL Update

September 21, 2015 at 10:05 am Leave a comment

Zacks Small Cap Research is showing some love to the Groove portfolio. Late last week they upgraded both Inuvo and CVSL.

For Inuvo, Zacks has been bullish for many months, but had suggested this quarter might show a slowing of the growth rate due to a slowdown in advertising in the auto sector. However, after Inuvo management’s presentation at a conference last week Zacks raised their revenue estimate to reflect another quarter of 30% revenue growth due to other verticals picking up the slack for auto sector and raised their price target to $3.77.Zacks had been quite bearish on CVSL’s prospects for months, so this is a 180 degree turn and in naming CVSL as a “buy” they suggested that the combination of improving technicals and earnings/revenue estimate revisions to the plus side leads them to believe that CVSL is heading higher. Here is a link to the article – https://finance.yahoo.com/news/inuv-company-affirms-growth-not-152000031.html

With CVSL, Zacks had been very bearish on CVSL’s prospects since its first mention at the beginning of this year. In comments out late last week, Zacks rated CVSL a buy and noted the increasingly positive technicals and recent positive earnings/revenue estimates. Here is a link to a synopsis – https://finance.yahoo.com/news/cvsl-cvsl-continue-surge-higher-083408545.html

CVSL was the focus of an article on Seeking Alpha put out late last week by one of our own that highlighted CVSL’s cheap valuation, improving operational outlook, the potential for a blockbuster product release and the likelihood of several new types of buyers emerging including CVSL itself due to the BOD buyback authorization. Here is a link to the article – http://seekingalpha.com/article/3516486-the-3-catalysts-that-could-move-cvsl-higher

The new product (Caspi) was launched Friday at the Agel 10 Conference in Lyon, France. CVSL chairman John Rochon, the former CEO of Mary Kay and the former top shareholder of Avon called the skin care product line “…the best of my work over 40 years in the skin care industry”, a pretty substantial endorsement from a widely recognized leader in the industry. Here is a link to the PR of the Caspi launch – https://finance.yahoo.com/news/agel-introduces-caspi-skin-care-083000934.html

We remain very bullish on CVSL’s prospects, as Friday’s closing price of $2.18 does not come close to reflecting the turnaround that we believe to be underway at CVSL or the potential for growth there. CVSL’s valuation still reflects a substantial discount to many of the other company’s in the direct sales space, none of which are growing at the rate of CVSL even BEFORE the Caspi launch. CVSL is simply being overlooked by investors due to the newness of its NYSE listing and the lack of Wall Street coverage. The “Buy” rating by Zacks is the first of what we think will ultimately be many mainstream investing/financial outlets who will recognize what is happening and jump on the CVSL bandwagon. We believe that CVSL at $2.18 will look like quite a bargain as the CVSL story gets more exposure over the next few weeks and months and we fully expect to see CVSL testing the $3 level in the near future.

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Groove Community Update – CVSL, RAVE, MARK, INUV Groove Portfolio Update – RAVE, INUV, MARK & CVSL

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