Friday, January 30, 2009 11:11:21 AM
STVI - 1/30/09 update....
STVI is a hot, rapidly growing company that has a great opportunity to be a multi-bagger. They are in the recession proof business of online dating web sites including applications on Facebook and MySpace.
Here are some reasons why I think they will be a multi-bagger:
1. Growth - STVI has been rapidly growing revenue and earnings and I expect that to continue. In Q3 revenue grew 63% and net income grew 183% with EPS of $0.036/share. Growth has developed from building social networking web sites. I expect them to continue to add more web sites as well as to improve their advertising rates thus further increasing revenue. For Q4 they have guided for revenue in excess of $1.08M which is a 24% sequential increase. http://investorshub.advfn.com/boards/read_msg.aspx?message_id=34932566
2. Growing Market - Online dating websites is a rapidly growing area. Also, STVI has a concentration in MySpace and Facebook which are also attractive growing spaces.
3. Gross Margin - While they don't report the cost of goods sold, one can see from Q2 to Q3 that 89% of the incremental revenue went to net income. Therefore additional revenue growth will go rapidly to the bottom line.
4. Excellent Cashflow - They have cashflow from operations of $747K for the first nine months including $275K for Q3.
5. Strong Balance Sheet - STVI has a book value of $0.125/share including cash of over $1M. Additionally they only have $45K in debt. That is extremely good for such a small growing company.
6. Hiring - STVI is looking to hire additional programers which typically is a sign of future revenue growth. http://www.snap-interactive.com/jobs.htm
7. Small Float and Strong Insider Ownership - The CEO Clifford Lerner owns 7M of the 10.7M shares outstanding.
More DD can be found here:
http://investorshub.advfn.com/boards/board.aspx?board_id=14553
STVI is a hot, rapidly growing company that has a great opportunity to be a multi-bagger. They are in the recession proof business of online dating web sites including applications on Facebook and MySpace.
Here are some reasons why I think they will be a multi-bagger:
1. Growth - STVI has been rapidly growing revenue and earnings and I expect that to continue. In Q3 revenue grew 63% and net income grew 183% with EPS of $0.036/share. Growth has developed from building social networking web sites. I expect them to continue to add more web sites as well as to improve their advertising rates thus further increasing revenue. For Q4 they have guided for revenue in excess of $1.08M which is a 24% sequential increase. http://investorshub.advfn.com/boards/read_msg.aspx?message_id=34932566
2. Growing Market - Online dating websites is a rapidly growing area. Also, STVI has a concentration in MySpace and Facebook which are also attractive growing spaces.
3. Gross Margin - While they don't report the cost of goods sold, one can see from Q2 to Q3 that 89% of the incremental revenue went to net income. Therefore additional revenue growth will go rapidly to the bottom line.
4. Excellent Cashflow - They have cashflow from operations of $747K for the first nine months including $275K for Q3.
5. Strong Balance Sheet - STVI has a book value of $0.125/share including cash of over $1M. Additionally they only have $45K in debt. That is extremely good for such a small growing company.
6. Hiring - STVI is looking to hire additional programers which typically is a sign of future revenue growth. http://www.snap-interactive.com/jobs.htm
7. Small Float and Strong Insider Ownership - The CEO Clifford Lerner owns 7M of the 10.7M shares outstanding.
More DD can be found here:
http://investorshub.advfn.com/boards/board.aspx?board_id=14553
Mike
Visit my favorite boards:
SwingTrade - #board-1781
VMC Motherboard - #board-3251
Due diligence on my favorite stocks is located on the sticky note on the SwingTrade board.
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