Perion (NASDAQ:PERI) is a small Israeli software company, which recently merged with a much larger but private Conduit Ltd. I have written several articles describing its business and supporting its decision to merge to increase its scale. Despite reporting excellent numbers for Q1 2014 and year 2013 on May 15 and re-affirming its full year guidance, the stock has failed to rally and has underperformed the market. The stock today trades at less than 7 P/E of projected 2014 earnings while still generating decent near 10% organic growth. There are indeed some legitimate reasons for caution. First of all, Perion heavily relies on two major customers: Microsoft Bing and Google AdWords for most of its revenue. Secondly, the...
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