Inuvo, Inc. (INUV), an Internet marketing and technology company specializing in marketing browser-based consumer applications, managing networks of website publishers and operating specialty websites, has one of the most bullish charts I have seen in some time. The company is rapidly becoming a leader in the internet advertising and e-commerce arena using proprietary search technologies. The stock has recently increased from $0.40 to as high as $1.20 on increasing revenues, as well as recently issued research reports issued by Merriman Capital with a target price of $2.50 and Craig-Hallum with a $2 price target.
The company is in the midst of escalating financial gains. During 2012 the company has increased revenue and EBITDA on a monthly basis. Third quarter revenue is expected to be over $15 million, which represents a sequential increase of close to 20% compared to $12.9 million during second quarter 2012. The company had announced revenue for the month of August of $5.1 million and $4.6 million for July. This is approximately an 11% increase on a monthly basis. One would expect the same trending for the month of September.
The Company is experiencing significant growth throughout their publisher network. The company serves as a liaison between advertisers and third party publishers. It is here where Inuvo provides pay-per-click advertisers to publishers. They utilize thousands of websites from well known portals to independent blogs. Their expanding web presence has allowed them to literally increase revenue with every click of a user's mouse.
Operating in a global online marketplace estimated to reach $105 billion by 2014, the Company has utilized its longstanding relationships with industry leaders Yahoo (YHOO), Google (GOOG), and Bing along with its than 7.6 million users on its proprietary ALOT Appbar. Inuvo has steadily increased the number of Tier 1 search queries and the user base of its ALOT Appbar.
Total search queries from the ALOT Appbar and ALOT Homepage products in Tier 1 markets increased 15% in the second quarter of 2012 compared to the first quarter of 2012. Tier 1 markets encompass the U.S., U.K., Canada, Ireland, Australia, and New Zealand. Additionally, they expanded their worldwide marketing efforts for the ALOT Appbar as management believes that a large global footprint for its suite of products provides them with a competitive advantage over other software search companies that are focused on only domestic consumers.
Inuvo is trading at a discount compared to its competitors based on a Market Cap/Revenue basis. Inuvo is currently trading for 0.40. ValueClick, Inc. (VCLK) is trading at 2.01, Blucora, Inc. (BCOV) is trading at 2.15, Demand Media, Inc., (DMD) is trading at 2.66 and Perion Network, LTD (PERI) is trading at 1.65. This is very compelling when you take the growth that Inuvo is currently experiencing in the market.
With an increasing user base and escalating revenues, the company appears well positioned to capitalize on the numerous opportunities that lay ahead within the online advertising via proprietary web properties, as well as, its affiliate sites. The company is still trading relatively inexpensively compared to its peers and it appears that many investors are starting to take notice of Inuvo as a good investment opportunity.
Disclosure: I am long INUV.