|Written by GSCR Staff|
|Wednesday, 25 September 2013 08:55|
In Monday’s Goldman Guide, “Size Matters” we mentioned two new IPO’s that began trading last week. Rocket Fuel (NASDAQ—FUEL) provides artificial-intelligence digital advertising solutions. The company offers artificial intelligence-driven solution that is built on its real-time optimization engine, which leverages Big Data and its computational infrastructure to deliver highly-automated, measurable digital advertising campaigns. FireEye (NASDAQ—FEYE) provides various real-time protection products to enterprises and governments. It provides malware protection system (MPS) products, including software-based appliances.
Additionally, we mentioned that certain sectors are really hot, such as the subs-sectors in technology of software security and software-based digital advertising. Millennial Media (NYSE—MM), a mobile advertising solutions provider is a consideration in space, as is security leader Check Point Software (NASDAQ—CHKP).
Along those lines, there is no doubt everyone has heard that Twitter is going public probably sometime next early next year. Yesterday the firm announced it would list on the NYSE as opposed to NASDAQ, citing wanting to avoid ‘trading glitches’ as the reason.
So we turned on our filters looking for a nice play on a small-cap technology company in advertising or social media listed on the NYSE as a way to gain on the Twitter buzz and the overall momentum in the niche sector.
MeetMe, Inc. (NYSE – MEET - $1.79) has quietly been under accumulation over the last three months after the bottom fell out in early June. MEET is trading over 1 million shares over that time and is up nearly 64% as well. There is a very bullish signal all the way out to the 50-day DMA also. Consensus estimates have the Company going from the red related to EPS to $0.02 per share in 2014 on over a 25% increase in top line revenue.
One of the key product offerings from MeetMe was rolled out in late July which was the release of its advertising platform on the iphone and Android. The move increases the potential native advertising inventory by as much as 3-10X. This is crucial for the Company moving forward as we know even from our own metrics that more and more of you are accessing Goldman Small Cap Research content on you smartphones.
We like a price target of $2.35 by the end of the year.
Have a great day!
Disclosure: Goldman Small Cap Research analysts are neither long nor short these shares but may elect to purchase the stock within the next 48 hours.
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