What does the company do, Bear?
Matt
Just curious
Advertising. Digital ads. They used to do something with mobile search (honestly I don’t even remember) and then that market started drying up / dying. So they made this huge series of acquisitions. Undertone was I believe the biggest. It’s actually like a digital ad agency that creates content, at least from what I can tell. Codefuel is another acquisition – it measures engagement and monetization, I believe.
Anyway, as you can tell my interest level in this company is really low, and if they have a secret sauce I don’t know what it is.
As for the share price doubling, my theory is that when they made the acquisitions, it cast serious doubt on the viability of their business. They were undertaking a major turn-around. Maybe their last quarter or two of decent results is slowly starting to convince the market that they can find a niche.
I think they could easily double from here without too much growth (is a PE of 12 really that hard to fathom for even a boring company?), but I also think it’s not something I’m ever going to feel comfortable with. I could continue to let it ride, but I have some things I want to buy right now…
…so I sold PERI.
Bear