Inuvo Inc (INUV)

[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