Inuvo Inc (INUV)

[wadirum1]

I saw that there was News for INUV and got all excited about it being the CPT S-4. No such luck. Just another bottom-feeding lawfirm trolling for disgruntled shareholders who think INUV at 40c was better than INUV+CPT at $1.50 or $2.00.

Imagine if every day you had to wake up and go in to work at one of those lawfirms, knowing that your entire life's work is just creating problems for people because the system lets you do so... What a nasty existence.

[wadirum1]

Is today the day CPT files their S-4? Timing in conference call suggested it could be any time now. Once we get the S-4, we'll be able to see CPT's earnings numbers, assets, liabilities, etc.

If those numbers are as good as I hope they are, then INUV is going to rock.

[wadirum1]

Now INUV trading so low that the CPT buyout shares are being valued at only 36c on the dollar compared to what venture cap investors paid.

I might need to buy another 20K shares.

I fully believe we will see a 60c gain from here within the next 2 months.

Wadi

[wadirum1]

Buyout math:

Current price=$1.18. Net of 45c of cash buyout payment, this is $0.72.

CPT determination of buyout value=$2.22. Net of the 45c cash payment, the deal involves $1.77 of CPT stock, valued at the price that venture cap guys paid for shares earlier in 2018.

So, you pay 72c for shares worth $1.77. That is nearly a 60 percent discount.

Happy shopping!

[wadirum1]

Thanks. Any thoughts as to what is going on with this particular CT order?

I should note that I misread this on Friday. The CT order keeps this information private until Nov 30, 2020. So, this is probably not buyout-related.

[trender18]

This link gives a good explenation of a CT order.
https://www.investopedia.com/terms/c/confidential-treatment-order.asp

[wadirum1]

This CT order is rather mysterious. It pertains to portions of their Yahoo agreement that were redacted in their filing. Apparently they will be unredacted on Nov 30? What is the significance of that date? What is the significance of these Yahoo terms? Is the buyout happening sooner than some people might be thinking?

Anyone with insights, please reply. I'm very curious about this. It is the first time INUV has filed such a document (the CT order).

[wadirum1]

INUV is currently on AMEX. The company buying them is CPT, which is currently one of Time Inc's 100 fastest-growing private companies. When they close the INUV deal, they will do an IPO on NASDAQ. (They will also be cross-listed on the Toronto exchange, because the investment banking support for this deal happens to come from Toronto.)

INUV was trading down at 40c and below because people were afraid AMEX was going to boot them off for failing to maintain a $1 share price -- either they were looking at being booted off or they would have had to reverse split their shares. This deal with CPT solves that problem.

[mick]

NASDAQ ????? 'Inuvo, Inc (INUV)'

[wadirum1]

Buyout at $2.22. Current price is a massive discount to that number.

Anyone who reads the transcript of the joint conference call hosted by the two companies will see right away that this is a deal that IS going to happen. They all but said that they already secured the investment banking support up in Toronto that they needed to get it done.

And as for the price, well that, too, is based in reality -- not some ridiculous pink-sheet nonsense. The acquiring company is paying a combination of cash and stock. The stock will consist of IPO shares as the company goes public. And the valuation is the same as that used when private equity guys invested earlier this year. Private equity usually gets sweet deals, but when you buy INUV at 1.25, you're getting more than a 50 percent discount to what private equity paid earlier this year.

But meanwhile hundreds of thousands of dollars will fly around pinkie world chasing crazy get-rich quick schemes.

Sheesh!

[mick]

interesting/ 'Inuvo, Inc (INUV)'

[wadirum1]

Given that the buyout is for $2.22, I suspect this next run up will get INUV up over $1.70. That's 34% above the current mkt price.

[mick]

Inuvo, Inc. (INUV)
1.26 ? 0.0 (0.00%)
Volume: 78,287 @ 10:35:31 AM EST ET
Bid Ask Day's Range
- - 1.25 - 1.29
INUV Detailed Quote

[wadirum1]

Usually there is a 10:30 dip in INUV's price. Not much so far today.

Maybe this is ready to move back up to the 1.40 or 1.50 range?

[mick]

I WILL NOW. https://www.tradescores.com/StockReport/INUV

[wadirum1]

Funny thing is how INUV often goes on sale each day at around 10:30.

I snagged some more for my pile.

[wadirum1]

Yes, indeed.

The discount to that $2.22 buyout price is very, very large. Either the market thinks the deal won't happen or the market thinks CPT stock is only worth 50c on the dollar compared to what private equity guys paid for it earlier this year.

But if you read the conference call transcript, you'll see that the deal is very real and CPT is very much the real deal. I can't wait to see the registration statement, which will include CPT's 2018 numbers...

[TradeNaked]

$INUV is being bought out @ $2.22 share price.

https://finance.yahoo.com/news/inuv-combined-company-could-trade-203000684.html

[wadirum1]

Yes, today started the next leg up. Getting tougher to find people who want to give away their $2.22 shares at prices under $1.50.

The deal is legit -- heck, they held a joint conference call and named specific INUV management who would be moving on to other jobs after the merger.

And the valuation is legit. The 45c portion speaks for itself. That leaves $1.77 in the form of CPT shares. In essence, at $1.20 we are buying those CPT shares for $0.75 (because $1.20 - $0.45 = $0.75). And that 75c payment is only 40-some percent of the $1.77 the CPT shares are worth.

And how do I know the CPT shares are worth that much? Well, that is what private venture cap folks paid for them earlier in 2018. If anything, one would presume that the private equity guys are likely to have negotiated themselves a good deal. Paying under 50 percent what the private equity guys did, seems like a good deal to me.

[trender18]

Nice gain today.

[TradeNaked]

$INUV expecting big day tomorrow based on chart.

[TradeNaked]

$INUV in @ 1.25 looks ready !

[wadirum1]

I predict that $1.30 will look like a very tasty entry point in the not-to-distant future.

I have been buying hand over fist.

[TheWingHunter]

some movement, unfortch I was in at 1.30

[wadirum1]

Hey Mick,

Have you had a chance to read this transcript? Mind-blowing that this is still selling under $1.75.

https://seekingalpha.com/article/4220866-inuvo-inc-inuv-conversionpoint-inuvo-joint-call-transcript

[wadirum1]

If anyone out there is serious about making money, I urge you to read the combined CPT and INUV conference call transcript. What they are building is a beautiful thing. And right now we have the opportunity to buy into this company at 50c on the dollar.

Since [INUV's] last earnings release, we have signed a number of significant new brands as IntentKey customers, including a top three insurer; the preeminent brand in audio; a leading online marketplace and a world-renowned research hospital. These companies can do business with anybody, they chose Inuvo.

CPT clients include: Walmart, Costco, BestBuy, Dish and many more.

Inuvo shareholders would own approximately 29% of that combined company before any dilution from financing. This total consideration translates into $0.45 per Inuvo share in cash and an estimated $1.77 per Inuvo share in equity. The equity component of the valuation was based on ConversionPoints most recent 2018 equity funding, which valued ConversionPoint’s common shares at $9.21 per share for a total estimated equity valuation for ConversionPoint of $146 million.

We are in the process of preparing to file a Form-S4 with the SEC to register the shares of common stock issued in the acquisition and we intend to file listing applications with both the NASDAQ Capital Market and TORONTO stock exchanges for the Holding Company shares.

[wadirum1]

[CPT] did about $50 million of revenue in their audited 2017 financials, and were recently named by Inc. Magazine as one of the top 100 fastest growing private companies in the United States. They have existing integrations at well-known online retailers like Walmart.com and officedepot.com, have well-respected shareholders that include Menlo Ventures, Granite and IBM.

Do people REALLY think that this CPT merger is a scam? Only worth $1.20, rather than the $2.25 that both CPT and INUV say the deal is worth?

I'll buy another 10K or 20K shares tomorrow if people still want to sell them so cheaply. And if I can't just turn around and sell them at 1.60 when the price comes back up, I'll just hold them long term.

I was pounding the table at 40c. And now I am pounding the table again.

Wadi

[TheWingHunter]

https://seekingalpha.com/article/4220866-inuvo-inc-inuv-conversionpoint-inuvo-joint-call-transcript

[TheWingHunter]

https://seekingalpha.com/article/4220866-inuvo-inc-inuv-conversionpoint-inuvo-joint-call-transcript

[TheWingHunter]

https://seekingalpha.com/article/4220866-inuvo-inc-inuv-conversionpoint-inuvo-joint-call-transcript

[wadirum1]

$INUV starting its next leg up after forming a nice pennant. Still trading at only about half the buyout price... Now is the time to buy IMHO. I've been loading and loading and loading.

[wadirum1]

Any thoughts on INUV?

[wadirum1]

NOW is the time to reload on INUV. Selling at about half the buyout price... I've been a heavy buyer over the past several sessions, including this morning.

[wadirum1]

Thanks for bringing that to my attention. Seems to be saying that $2.25 isn't a good enough buy-out price if I read it correctly.

Maybe the lawsuit has legs, or maybe it is just one of those attempts to throw a bunch of pasta and see if anything sticks.

As for me, I am focusing on whether this starts climbing up over $1.50 due to this $2.25 deal. I think it will and am going to be a heavy buyer again tomorrow.

[mick]

THANK YOU,

[trender18]

What do you think of this investigation? https://finance.yahoo.com/news/shareholder-alert-weisslaw-llp-investigates-200000798.html

[wadirum1]

There is some speculation on various chat boards that the INUV buyout is just a ruse to get the INUV PPS up to avoid delisting. Maybe that is so, but I think this is in fact a real deal, and I have been aggressively buying INUV at 1.20 and below. And I will continue to do so next week if the price stays depressed. Here's my thinking:

CPT is a for-real company that operates in exactly the same space as INUV. Acquiring INUV makes perfect sense for CPT.

CPT is winning awards left and right for its advertising work in areas related to INUV. They wouldn't be putting out sham buyout deals to prop up INUV PPS. These are not pinksheet scam companies.

CPT has done similar deals in the past -- it is a bit of a "roll-up" (a company growing through repeated acquisitions). Their books show $55M in assets -- though there is a lot of goodwill (due to being a roll-up).

The company, while private, has audited numbers for 2016 and 2017 that they have published on their website: https://ir.conversionpoint.com/. They had gross profits in 2017 of $12M, up more than tenfold from 2016. Their expenses are also growing, so that their earnings weren't all that large.

My takeaway is that this is a genuine company that is a good fit with INUV. Moreover, INUV it itself something of a roll-up, having been formed from 2 companies that I believe were also active on the acquisition side. It is in the company's DNA to do deals like this. And they had to do something, because INUV on its own was losing money and struggling to find capital to invest in its really, really cool software for advertisers. So, the deal makes a ton of sense for INUV as well as for CPT.

OK, I'm not going to argue that this values INUV at $2.25 or whatever they are claiming. But I think it is a steal at $1.15.

Wadi

[wadirum1]

Just added more INUV.

[wadirum1]

Are INUV shareholders going to give me the opportunity to load up at 10:30 every day?

I'm loving this!

[wadirum1]

Power hour?

Could be exciting...

[EL CHAPO]

Perfect loading wall at $1.32 :) $$$$$

[EL CHAPO]

Huuuuge RUN UP coming this afternoon watch!!! Love these tricks!!! Load!!!

[EL CHAPO]

I’m loading eveything down here. Already 62,000 shares today. Going to $2.00+ “Thursday”$$$$$$

[wadirum1]

Walked away from the computer for a while and saw that I got 10K shares at 1.23 at 11:40 when someone dumped 150K shares in a market sell.

This is kind of crazy land.

[EL CHAPO]

I’m on the other side now. Loading as we speak! This is going to $2+

[wadirum1]

Wow! Easy pickins!

Anyone else get shares on that dip??

[wadirum1]

I'm reloading on INUV right now. Buying under 1.30 for a near-term flip.

The buyout offer is for $2.22. That is a long way from 1.24 where my most recent 5000 share block was purchased.

[wadirum1]

I was hoping INUV would tank a bit this morning. And while I was typing this, I got my wish. I took a small position at 1.37 for a flip.

Right now, my favorite overlooked value plays are D-A-I-O and P-O-L-A. I bought more of the former this morning.

Wadi

[stocky101]

It’s a buy & Hold

[cjstocksup]

INUV what a fun day. That earlier dip this AM was a gift. Still around $1.40's afterho0urs.