Tremor Video rallies; SA author likes valuation, growth potential

With $92M in cash (compares with a $226M market cap) and shares down over 50% from last year's $10 IPO price, Tremor Video (TRMR +3.7%) is a compelling value play "with little downside risk," argues SA author Charles Moscoe in a bullish write-up.

As with rival YuMe, Moscoe is optimistic about Tremor's ability to profit from a burgeoning programmatic online video ad market. He also likes the company's shift towards higher-margin performance-based pricing (29.8% of 2013 revenue) from traditional demographic-based pricing, and expects the Q2 launch of Tremor's VideoHub Connect programmatic platform to accelerate the trend.

The author adds Tremor holds valuable video ad-optimization patents, has seen strong insider buying in recent months, and has valuable long-term deals with publishers such as Viacom, AMC, and A+E Networks.

Like YuMe, Tremor competes against both independent online video ad firms, and the internal ad sales efforts of sites such as YouTube and Hulu.

From other sites
Comments (0)
Be the first to comment
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs