Vince Martin
Long/short equity, value, gambling

Perion's Risks Extend Beyond Bloomberg Report

You can't say 2013 has been boring for Perion Network (NASDAQ:PERI), formerly known as IncrediMail. The company saw a nice bounce in the year's first week, then jumped 20 percent on January 8th as the company pre-announced better-than-expected 2012 revenue and projected sales growth of at least 80 percent in 2013.

The jump pushed the stock to an all-time high, and yet the stock still seemed somewhat undervalued. The company guided for 2013 non-GAAP EPS of "at least" $1.61 per share, putting its forward P/E around 8. Given that the company projected that organic growth for FY13 would still be in the 25% range, such a multiple seemed low, despite the stock having tripled from June lows. The...

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