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Thomas Renna
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Since graduating Rutgers University (B.A.) in 1990, Tom has worked in the financial industry in various capacities. visit www.equitiesresearch.com
My company:
Equities Research, LLC
  • A Stock Cramer Never Recommends 0 comments
    Mar 16, 2012 10:05 AM | about stocks: TST

    A Stock Cramer Never Recommends

    A Penny Stock that should be bought aggressively for the long term

    TheStreet, Inc. (NASDAQ: TST $1.94)

    TST stock is trading less than book value. It's very difficult in today's environment to find any stock that is not trading at a premium. Most of the market is higher than it was in October and finding discounted investments is nearly impossible.

    (Digital) Content Merger & Acquisition Activity.

    Advertising Industry Statistics

    TheStreet (NASDAQ:TST) year end stock prices

    • 2007 $15.92
    • 2008 $ 2.90
    • 2009 $ 2.40
    • 2010 $ 2.67
    • 2011 $ 1.68

    The stock has declined from 2007 highs due to declining sales, income and cash flow.
    (Stockdiagnostics charts: OPS 20q, OPS 5yr, FCF 20q, FCF 5yr, LTGR,GFNN)

    Fundamentals have declined over the last 5 years. Weakening fundamentals are nearly always avoided on the long side, but I find the shares attractive on the health of the company's balance sheet and the low Operational Cash Flow multiple the stock currently trades.

    • FY2011 Operational Cash Flow = $3,558,977.00 or $0.11/share
    • OPS MULTPLE PER SHARE: 17X OPS

    The online financial information sector is here to stay and Thestreet is a pioneer in the space. I believe TheStreet will be acquired at some point at premium to it it's current cash value of $2.34.

    TheStreet, Inc Annual report

    TheStreet, Inc. Management Presentation

    I'm not sure if Cramer is allowed to tout this stock, but if he could, it would get a big United States Booo-Yaaa!

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: TST
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