CASH COW

[WANG]

TRFX.....todays volum was highest in years.
IMHO...possible good momentum play till next week.at least..



Small Cap Focus

Updated: 08-Apr-04 12:03 ET

Small Cap Profile: Traffix (TRFX)

[BRIEFING.COM -- Robert J. Reid] Yahoo reported a blowout quarter last night, prompting a search for under the radar names that should be benefitting from the same trends. Traffix is a profitable small cap online company with a solid balance sheet that looks attractive ahead of its FebQ report next week.

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Background
Traffix (TRFX 6.35 +0.45) is an on-line database marketing company that its on-line media network to generate leads, customers and sales. The co provides marketing solutions through on-line marketing programs, and database development. The co uses its websites, interactive games, surveys, banner advertisements, email marketing and database of permission-based records to generate customers and sales leads. The co receives a fee for every lead, customer or sale generated. Its line of direct-to-consumer products include Internet based services, such as iMatchUp.com, a popular on-line dating service.

Stats: Mkt Cap $83 mln, avg volume 82K, float 9 mln.

Key Points
New High: A stock we view as a Yahoo (YHOO) play that is making a new 52-week high today is Traffix.
Lots of Cash: The co's balance sheet is solid with $38.2 mln in cash/inv, or nearly $3 per share, with virtually no debt. This should help to limit downside.
Price/Sales: The stock trades at 2.5x ttm sales, or 1.4x if you back out cash/inv.
Profits & Dividend: The company is profitable and even pays a 5% dividend yield thanks to its strong cash position.
Timing: The stock is being bid up ahead of its FebQ report next week (Wed) with optimism increasing that TRFX is benefitting from the same trends as Yahoo.
Bottom Line: A number of Yahoo plays are moving up today. Traffix is not a well known name, but it benefits from the same online marketing trends that Yahoo does. We examined a number of Yahoo plays, but the fundamentals of many made us refrain from profiling them. TRFX is a good combination of profitability, a strong balance sheet, valuation, a small float (9 mln), a dividend and the timing is attractive (ahead of its FebQ report next week



Traffix, Inc. Fiscal First Quarter 2004 Earnings Release And Conference Call Scheduled For April 14, 2004
http://biz.yahoo.com/bw/040408/85322_1.html