TheStreet.com (TSCM) closed at $3.01 on November 5th, 2010.
As I previously noted in my first instablog, TSCM is trading for almost the cash on the balance sheet.
http://seekingalpha.com/instablog/697570-joshua-heller/99983-thestreet-com-tscm-trading-for-almost-cash-on-the-balance-sheet
TSCM ended the quarter with $79.7MM in cash equivalents, approximately 2.9MM lower than last quarter. TSCM had 2.9MM in capital expenditures, with $900,000 in dividends while receiving $900,000 from a sale of non core assets (salepromotions.com). TSCM does not have any debt. With a current market cap of $91.4MM, the stock market is valuing the existing business for only 11.4MM.
The catalysts still remain for TSCM, higher advertising revenue (9% increase YoY) from a recovering US economy and higher subscription revenue (8% increase YoY) from a recovering stock market.
There are two new partnerships that the company is excited about, that should bring new traffic to TheStreet.com. A partnership with the PBS The Nightly Business Report, with TSCM creating the editorial content on a weekly basis (running on Tuesday's show) and a partnership with Newsweek which will feature editorial content on both the print and online properties.
Also driving traffic, the mobile website version of TheStreet.com (TheStreet.mobi) has also been released.
Showing posts with label TSCM. Show all posts
Showing posts with label TSCM. Show all posts
Sunday, November 7, 2010
Sunday, October 10, 2010
TheStreet.com (TSCM) trading for (almost) cash on the balance sheet
TheStreet.com (TSCM) closed at $2.85 on October 8th, 2010.
Highlights from the 2nd quarter include:
TSCM ended the quarter with $82.6MM in cash equivalents, higher by 1MM which includes a dividend payment of $900,000 and sale of non-core assets. TSCM does not have any debt. With a current market cap of $88.7MM, the market is only valuing the business for 6.1MM.
For those worried that Jim Cramer might leave the company, Jim Cramer accounts for less than 1% of the site traffic.
Another reason why I like buying TSCM here is that the stock is not pricing in any catalysts. There are two catalysts on the horizon, a stronger economy (higher advertising revenue) and a stronger stock market (more advertising revenue and higher subscription revenues). If neither of these occur, the stock is protected by the cash on the balance sheet.
While there is nothing written in stone that says a company must trade higher than their net cash balance, I believe that the price today is an attractive entry point.
TSCM pays a quarterly dividend of $0.025 per share, an approximate yield of 3.5% at today's closing price.
Highlights from the 2nd quarter include:
- Advertising revenues were up 6% year over year
- Subscription revenues were up 9% year over year
- Jim Cramer accounted for less than 1% of our site traffic, ranking 24th among our contributors and authors
- Generating positive FCF, cash on balance sheet increased by 1MM from the previous quarter (in part due to sale of non-core asset)
TSCM ended the quarter with $82.6MM in cash equivalents, higher by 1MM which includes a dividend payment of $900,000 and sale of non-core assets. TSCM does not have any debt. With a current market cap of $88.7MM, the market is only valuing the business for 6.1MM.
For those worried that Jim Cramer might leave the company, Jim Cramer accounts for less than 1% of the site traffic.
Another reason why I like buying TSCM here is that the stock is not pricing in any catalysts. There are two catalysts on the horizon, a stronger economy (higher advertising revenue) and a stronger stock market (more advertising revenue and higher subscription revenues). If neither of these occur, the stock is protected by the cash on the balance sheet.
While there is nothing written in stone that says a company must trade higher than their net cash balance, I believe that the price today is an attractive entry point.
TSCM pays a quarterly dividend of $0.025 per share, an approximate yield of 3.5% at today's closing price.
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