- 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.