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Mohannad Aama

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  • High Conviction: Is Way Undervalued [View article]
    @Mick Weinstein, Not sure about what rapid growth you referred to, but MW was established in 1997 and was 7+ years old when bought by DJ in 2004, a time and a market environment that is not unlike 2010 - fresh of a rebound in the stock market the previous year right after a recession and during the early stages of a new business cycle and an upturn in advertising spending. TSCM, just like MarketWatch broadens the user and advertiser base of the acquirer, be it a big player in online publishing that operates in verticals other than Finance or another consolidator that wants to beef up its presence and reap numerous synergies from acquiring a competitor. As for CBS and CNET, hindsight proved that the multiples were of revenues at the height of the economic cycle, based on 2007-2008 revenues, just before the recession hit which reduced revenues the following years. Those same multiples 3 years before would not have been considered an overpayment.

    @Silverfox2 re Cramer leaving or the length of his stay in the event of an acquisition - this will be factored in the price that the acquirer will pay. Keep in mind that he is under contract with TSCM and he gets handsomely paid for his writing - to the tune of $1.5 million (more or less), so a similar arrangement can be done with any potential acquirer. As for the numbers you mentioned, I am familiar with both, and taken together, they do not change the underlying thesis.
    Mar 16 12:24 AM | Likes Like |Link to Comment
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