Dan Jacome

Strong Quarter and Improving Financial Results Make ComScore a Buy

nice piece, I'm actually doing an extensive research report on SCOR right now and you have the right idea....

1) stock is not cheap: on an EV/EBITDA, EV/sales, and fwd PE, SCOR tops its peers. I may have the wrong comp group, but I looked at companies like GOOG, OMTR, IT, FORR, ARB, & SRVY

2) St is worried about the GOOG Ad Planner threat and that will be an overhang on shares until we see how much companies switch to the "free stuff" GOOG is pushing...I personally think the GOOG threat is overblown

3) As soon as revs decelerate, the stock is getting crushed.

4) St is paying up for stock b/c it is a pure play on what it does and they have the best management team in the media intelligence business, hands down..

5) yes, cash on the balance sheet is nice, but we all know they will do more acquisitions going forward. at some point, SCOR may issue their rich deal currency (i.e stock) to swallow tuck in targets -- St may not like that.

6) In a couple of years, when earnings stabalize, SCOR gets bought out. Read the management team bios -- these guys know how to create wonderfdul things, negotiate, and flip.

7) you are underwater, but dont worry about it. I regressed the stock and got a beta of just .88, but this is still a very choppy stock. The motion of the Russell 2000 and SP600 only account for < 10% of this stock's movement ("R-squared")...I also ran a 5000 iteration simulation and found that the chance of you losing $ on this stock is ~ 60% and the chance of you making > 10% is about 40%.....so net net, this is not a stock for your grandmother down in Boca Raton, FL...

good luck!