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RetailMeNot (SALE) soars following its IPO: shares of the online coupon/promo code site opened...

RetailMeNot (SALE) soars following its IPO: shares of the online coupon/promo code site opened at $26.50 and are currently at $26.97, up 28.4% from an IPO price of $21. That gives the company a market cap of $1.35B, or 9.4x 2012 sales. ChannelAdvisor (ECOM +4.2%), another company that offers marketing tools/services for e-commerce firms, has shot higher in sympathy. (IPO pricing) (Q1 results) (S-1)
Comments (2)
  • Deja Vu
    , contributor
    Comments (1100) | Send Message
     
    Can't wait for options to trade on this.
    19 Jul 2013, 03:05 PM Reply Like
  • FatBearHoneyLover
    , contributor
    Comments (183) | Send Message
     
    You might be right, but here are few points you may want to check:

     

    Fundamentally speaking:

     

    - It's profitable. Business structure is perceivable, less complicated, kinda mundane if we'd compare with Groupon and others.
    - Although we may argue its growth looks inorganic (due to several acquisitions), the management seems competent enough to drive up both profit and growth over the years. Notably, the ceo have more business experience than Andrew (Groupon) or Mark (Facebook). I personally enjoy the fact that he used to work and was successful in finance sector (Bankrate). And the balance sheet is not bad at all.
    - The overall economy and week spending may positively influence its business.
    - The mobile space really needs a mundane and friendly platform to boost sale. RetailMeNot app is one of the most downloaded and highly rated on both Android and iOS. Currently, their traffic on mobile has contributed roughly 40% of their total traffic.

     

    Speculative speaking:

     

    - Since it's relatively new, we may not worry about option for shorting any time soon.
    - It's the only major internet IPO of the month - one with both attractive growth and is currently profitable.
    - The upcoming QE is near and worth the wait. The price could be down due to hype but the QE at year end could be more promising, due to holiday season.
    - There is more potential business moves within to explore, such as cashback and expansion into global market.
    20 Jul 2013, 05:28 AM Reply Like
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