Regular readers of my columns know that I am not always the biggest fan of the mad maniac of Mad Money, Jim Cramer. Self-aggrandizing hyperbole is just not my style. However, I am high on the firm that Cramer founded and remains a director at, TheStreet (NASDAQ:TST). It is one of few stocks I have seen whose market capitalization is roughly equal to its net cash, and it has several catalysts that should drive its stock significantly higher over time.
TheStreet, Inc., together with its subsidiaries, operates as a digital financial media company in the United States. The company provides various subscription-based and advertising-supported content through a network of proprietary electronic services, including Web sites, mobile devices, email services, widgets, blogs, social media, podcasts, and online video channels.
Here are seven reasons why TheStreet.com is a solid aggressive buy at $1.90 a share:
It has $2.03 a share in net cash on its books. This is less than the current stock price.
It just brought in a well-regarded CEO who had successful stints at Bankrate (NYSE:RATE) and Newser. Elizabeth DeMarse has considerable experience in the online space and should make better use of the company's solid stable of assets.
An activist fund has taken a 6% stake in the company and is pushing for changes to unlock shareholder value.
The company pays a robust dividend of 5.6%.
The stock sells for 68% of book value and 1 times sales. In addition, despite the $8mm loss in FY2011, it had positive cash flow for the year and network traffic was up 25%.
The price target on the stock for the one analyst that covers the stock is $4 or double the current stock price. The stock sold for $16 early in 2008.
The stock looks like it has bottomed (See Chart)
Click to enlarge:
Disclosure: I am long TST.