I had such a LOUSY day yesterday....didn't post any new ones. We got stopped out on our DKS and it then turned around and zoomed up! Sold a couple of others and I will update you on these as we go.
This morning the market was up and the Fed was preparing to cut rates....don't you kind of suspect the market turns LOWER on the NEWS of the cut. That is how it works...things RISE in anticipation and FALL on realization of expectations. Kind of a mind game don't you think?
I scanned some of the movers today, saw RATE and bout 400 shares. So I AM a stockholder of this one. I don't usually like to buy first and let you know later.....but when I DO, I want to tell you about it...transparency you see!
Bankrate, Inc. (RATE) "provides consumers with independent and objective research comparing various banking and credit products, such as mortgages, home equity loands and credit cards through a broad portfolio of Websites and print publications." per CNN.Money.
RATE is having a GREAT day today trading at $10.40 up $1.13 on the day or 12.19%.
On April 30, 2003, Bankrate reported their first quarter results for the quarter ending March 31, 2003: total revenue rose 52% to a record $8.5 million from $5.6 million in 2002, net income was up over 100% to $2 million from $690,000 in 2002 and on a per share basis was up to $.13/share from $.05.
Morningstar shows nice sequential growth from 1998 when $3.5 million in revenue was reported jumping to $12 million in 1999, $15.2 million in 2000, $18.3 million in 2001, and $24 million in 2002. Extrapolating from the current $8.5 million in the first quarter of 2003 would bring us to a $34 million/year rate this year. Certainly, if interest rates start rising...not expected soon..but possible...there might be a quick drop off of refinancing.
Free cash flow has been improving steadily from a negative $18 million in 1999, negative $13 million in 2000, to a positive $1 million in 2001 and $3 million in the trailing twelve months per Morningstar.com.
Morningstar goes on to report an excellent financial picture for RATE with $8.4 million of cash on hand with only $3.8 million of current liabilities and $0.1 million of long term debt. Other current assets are at $3.3 million not even counting the cash.
This is a small company with a market capitalization of $131.7 million with only 14.2 million shares outstanding and a float of 7.10 million shares.
Yahoo reports a p/e of 23.23 so valuation is good.
You can see why I like this one....another dot-com (yikes!)....and bought 300 shares this a.m. Use your own judgement on this! As always keep the 8% stops and drop me a line at firstname.lastname@example.org if you have any questions, comments, or most of all words of encouragement!