Seeking Alpha

Angie's List drops on news of CTO departure

  • Angie's List's (ANGI -3.1%) discloses Manu Thapar, the company's CTO since Oct. 2011, is no longer working for the company, and that his "responsibilities have been assumed by other members of the company's senior engineering team."
  • The disclosure's wording suggests Thapar, who had senior engineering positions at MySpace, Yahoo, and Cisco before joining Angie's List, might not have left on his own volition.
  • Last month, Angie's List hired Nokia exec Thomas Fox to be its CFO, ending a 5-month search.
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Comments (8)
  • naatalie marra
    , contributor
    Comments (4) | Send Message
     
    I am an ignorant private person learning as I go along, hoping to possibly
    enable me to make or not make investments for my self.

     

    I would very much appreciate it if anyone who understands this company or this "industry"
    sufficiently enough to prepare a thorough analysis of it.
    Or perhaps could pass along the name of anyone who
    may have prepared an analysis of Angie's List.

     

    In addition, does anyone know what the total "shorts" are?
    Thanks,
    30 Sep 2013, 02:49 PM Reply Like
  • Dampflok
    , contributor
    Comments (979) | Send Message
     
    check previous posts on ANGI, there definitely is something interesting there for you.
    30 Sep 2013, 04:54 PM Reply Like
  • Tauranga48
    , contributor
    Comments (161) | Send Message
     
    Go to the to right corner of the page key in ANGI and hit return. You will be presented with a long list of articles, some of which clearly explain why this business is in the writer's opinions overvalued. There are of course articles saying the opposite, but in my view those articles appear loss objective, and less trustworthy. In a free society it is normal to dissenting views, so this is OK. The trick is not just working out which views are more likely to be right, not even what the rest of teh market thinks, but working out what the rest of the market will be thinking at the time you wish to sell,

     

    At the risk of being too simplistic, it is normal to see a company making money and making more each year before assigning it a high value. However when stock markets are at historical highs, these basic valuation disciplines get forgotten and fashion determines price. Social media is the latest fashion, like dot com was in 2000. As a newcomer you may be unaware that the dot com segment was all about sky high valuations on businesses that had yet to demonstrate a track record of being able to earn money, and as a result the NASDAQ crashed and over 10 years later the NASDAQ has still not recovered to its average 2000 level, let alone the peak. Some people call that segment "dot gone".

     

    I would suggest that you sell all your shares (especially this one), put the money in a safe place and get hold of a copy of "The Intelligent Investor" from your local library. When you have understood what drives the intrinsic value of a business you are then in a position to invest in individual stocks. The fact that you are asking this question indicated you might be "investing blindfolded". This is generally a high risk strategy, similar to driving a car with a blindfold.
    30 Sep 2013, 06:02 PM Reply Like
  • Bo Yang
    , contributor
    Comments (88) | Send Message
     
    Hmm, I wonder why this is causing ANGI to drop. Compared to MySpace, Yahoo, and Cisco, ANGI's IT infrastructure requirement must be really insignificant.
    30 Sep 2013, 03:56 PM Reply Like
  • adamsmithy
    , contributor
    Comments (4) | Send Message
     
    The only reason this stock is dropping is because of the combination of a lot of short sellers and some possibly negative news, the CTO being let go. I have to say that is no reason for the stock to drop. The financials are fine. The product is the main question. Does a consumer paid model with arguably better more objective reviews work better than a free reviews model or a service provider paid model. I think there is a place for the model, consumer reports is still around, but I think they have to migrate or have a subsidiary that uses the service provider pay model. Plenty of those to acquire. If that happens, I say they will have a much better product than yelp, etc.
    1 Oct 2013, 06:44 PM Reply Like
  • Andrew Williams
    , contributor
    Comments (276) | Send Message
     
    But ANGI is not a consumer paid model. Over 70% of revenues comes from the advertisers and they can purchase preferential treatment on the ANGI website.
    2 Oct 2013, 10:21 AM Reply Like
  • TimC99
    , contributor
    Comment (1) | Send Message
     
    And advertisers can NOT pay to advertise...UNLESS they have FIRST received unsolicited POSITIVE REVIEWS with an ACCEPTABLE GRADE on Angie's. Furthermore, the slightly "preferential" treatment they are given in listings (for example, by offering an Angie's coupon/discount) can be easily overridden by the consumer. I regularly override and search for the highest rated providers in a service category...THEN look to see who is also offering coupons within the highest rated providers. Like anything, you have to understand both the data and the search and evaluation tools...kind of like stock investing!
    24 Oct 2013, 04:30 PM Reply Like
  • adriaan@ligtenberg.com
    , contributor
    Comment (1) | Send Message
     
    Interesting discussion, I think shorting this company is all what is left. (I have done so) Having a valuation in the $1B not making any profits and being on the verge on being disrupted not only by the googles and the Yelps but even more disruptive are the market platforms focussed on bringing the pro's and the consumer on a direct single platform ala Uber.
    2 Oct 2013, 01:16 AM Reply Like
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