Friday, February 25, 2005
FindWhat Searches for a Tailor [Fool.com: Motley Fool Take] February 24, 2005:
"By Rick Aristotle Munarriz (TMF Edible)
This isn't FindWhat.com (Nasdaq: FWHT) at its finest hour. After a lackluster December quarter sent the shares lower last night, one is starting to realize that in the paid search space you have Google (Nasdaq: GOOG) and Yahoo! (Nasdaq: YHOO) on top and just about everybody else fighting for scraps like prehistoric bottom-feeders.
FindWhat's fourth-quarter numbers don't appear to be so bad on the surface. That's because the company's revenues nearly tripled, which is impressive until you realize that it's not all organic growth. The company has made some significant acquisitions, and while I think they were all sound moves, diluted shares outstanding are up by 38% over the past year as a result of the buying spree. That's why one is right to be cynical when one reads about a 179% top-line spurt...
...That's why the stock is a great deal at this morning's prices. After last night's spill, the stock was marked down to just 13 to 16 times this year's earnings. Even if Google's coattails now lay separated and motionless under its feet, FindWhat's an attractively priced growth stock right now. All it needs now is a tailor to sew them back on..."
"By Rick Aristotle Munarriz (TMF Edible)
This isn't FindWhat.com (Nasdaq: FWHT) at its finest hour. After a lackluster December quarter sent the shares lower last night, one is starting to realize that in the paid search space you have Google (Nasdaq: GOOG) and Yahoo! (Nasdaq: YHOO) on top and just about everybody else fighting for scraps like prehistoric bottom-feeders.
FindWhat's fourth-quarter numbers don't appear to be so bad on the surface. That's because the company's revenues nearly tripled, which is impressive until you realize that it's not all organic growth. The company has made some significant acquisitions, and while I think they were all sound moves, diluted shares outstanding are up by 38% over the past year as a result of the buying spree. That's why one is right to be cynical when one reads about a 179% top-line spurt...
...That's why the stock is a great deal at this morning's prices. After last night's spill, the stock was marked down to just 13 to 16 times this year's earnings. Even if Google's coattails now lay separated and motionless under its feet, FindWhat's an attractively priced growth stock right now. All it needs now is a tailor to sew them back on..."
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