First off, this is NOT meant to be construed as a recommendation for the stock but rather a discussion of TheStreet.com (TSCM) — the company, including its products and services. Investors should do their own diligence and not rely upon anything said here as a basis for investing.
Seeking Alpha’s been running a great series, High Conviction Picks — where asset managers are interviewed on their best ideas. Definitely check it out: High Conviction: TheStreet.com Is Way Undervalued. I thought it deserved some noodling.
Couple of salient points from Beam Capital’s Mohannad Aama on why he likes TSCM:
- economic recovery spells good things for advertising revs and subscription revs
- finance has some of highest CPMs/CPCs
- not too many pure-play, publicly-traded online finance companies with scale and targeted audience like TheStreet.com has
- traditional media companies are slimming down non-core operations which provides new syndication opportunities for TheStreet.com
- take-over possibility
- not worried about Jim Cramer’s role in the firm going forward
The comments on the article show the common retail investor’s antipathy towards the stock as these investors frequently conflate their feelings for the stock with their feelings for Cramer.
I think it’s pretty clear that Cramer does play a big role in the firm — from his ownership of the stock to his board role to his touting of the company. Whatever you think of Cramer, he has brought a fervor for investing to a broad base of America. He is clearly a double-edged sword for TheStreet.com and plays a key role in its success going forward.
The company is redoubling its focus on selling subscription revenues so every paid financial service out there should take note of the firm’s progress.
Disclosure: No positions