Paul Cookson

Paul Cookson
Contributor since: 2013
Agree! Piper has no shame putting a price target of $25 on this wreck. Still if they can push the price up, it's the mug clients who buy the new stock who are the fools. Advisor commissions just get paid out of that new money.
I look forward to some decent analyst getting hold of this. Now its $1.4bn it must come under more scrutiny.
I dont really care about the PE that can go where it likes, the trouble this company has it that it will never turn a profit - for 12 months.
Advisors now lining themselves up to get fees from the impending fund raise which will no doubt be due soon. Piper coming out with a $25 target which is $1.4bn for a company with $50m losses and slowing growth.
Check out for the sort of business which will destroy ANGI. They already rank higher on google trends. being just one of them. This site only charges £40/month to service providers in the UK and those posting jobs do so for free. It currently has the same google search volume as ANGI and is growing around 10x the rate of ANGI.
I really meant on an ongoing basis, not just 1 quarter.
I have no doubt there are many example of how ANGI has helped businesses such as yours. You don't earn $90m odd in revenues and not have a decent product to sell. As i state in my article, i think the website has value to those who use it.
The thrust of my article was about where the business is going. It's moving from paid members to a paid advertisers model. This is bourne out by a reducing revenue earned per member figure. And they are already providing free memberships: From page 31 of the 10-K: "Total paid memberships also includes a de-minimis number of complimentary memberships in our paid markets for all periods presented."
Clear ANGI has stopped spending money on marketing due to cash burn. Take a look at google insights to see the collapse in search for this company - recently hit a low for 2012 and massive decline from 2011.
I expect the next quarter members added to be very poor.
How to ensure Gamestop customers leave......tell them how they can play games online supplied by someone else!
Last earnings release shows sss falling 2.1% in 2011 vs 2010. Latest sss now down 12.5% in this latest qtr. I just think too many marginal gamers are transitioning to mobile/social gaming.
This announcement reminds me of Game Group in the UK which always made a fuss of outperforming the market. What they failed to point out was the market was falling. They went bust pretty quickly once publishers stopped supplying games to them as they couldn't get the insurance to cover potential losses of Game not paying its bills. Check out the credit insurance price of Gamestop to see where this company is going.
It may not have debt but it has a large quarterly rent bill to make each month. It needs all those stores to contribute to the gross profit line in order that it can meet its expensive game delivery model. Kongregate provides free games so i assume this is making losses. The cost of digital distribution is very low unlike physical distribution. The developers will not need shops and unless gamestop finds itself some very long term relationships with developers it will not have anything to sell.
Thanks for the interesting article.