Monday, February 23, 2015
Travelzoo.com - TZOO
The M&A is hot in this space, but TZOO is plugging away at a hotel platform that has no chance of competing against all the others out there. Strange how management is moving away from what makes the website unique and is trying to mimic what's already been done. The shares will likely stay elevated with buy-outs always in the rumor mill. PRO Article & Editors Pick
ReachLocal - RLOC
This company has some nice SaaS solutions for businesses trying to manage leads, but I don't think they charge enough. Personally I see a flat/down year ahead and it could turn into a nightmare if sales of new/existing products don't sell. PRO Article
LoJack - LOJN
This company has been selling the same product for 25 years - that in itself is impressive. The only issue is the company only can serve limited markets in the USA - and always seems to run into problems when expanding into foreign markets. PRO Article, & Editors Pick
United Online - UNTD
Still watching this company. They've announced 2 new websites/apps that seem mildly interesting. You never know how those things can go, but UNTD seems like it kept costs in check so there would be upside if the sites work out. Still don't think this company is compelling enough to invest in, but the management is trying & seem more than competent. PRO Article & Editors Pick
McDonalds - MCD
Back in October I wrote a quick piece on McDonald's basically saying the fundamental story was going to come to the forefront - so dividend only investors might want to take notice. Since then the CEO was bounced and MCD is still trying to figure out what it's going to do. Personally I think there's more pain before gain in the company ... but shares will likely weather the storm fairly well. I haven't ate at MCD in a long time and have no reason to - but a transition to a simpler menu and fresher food might make me want to try it again if it was the only option.
MGT Captial Investments - MGT
Probably will report 'earnings' at some point this month, although you never know with this crew. I had to chuckle when last month the company puts out a press release bragging about launching a website (that will make no money) at night club with porn stars attending. LOL - and people wonder why this company is in the tank.
Last month was also a major conference for daily fantasy sports at Bellagio in Las Vegas. It was almost like Draft Day didn't even exist. Several presenters confirmed a viable #3 daily fantasy site seemed unlikely unless it was affiliated with Yahoo, ESPN, CBS or a similar property.
A reverse split seems like the likely scenario at some point for MGT to keep it on the regular exchange, but so does some kind of pump/dump campaign. The CEO knows if he tries the latter, I will likely perk up again and he may not want that. All I know is MGT likely only has a few more puffs of air left in them before it all comes crashing down.
That's it for this month. Added JYNT @$6.06 and SYRX @$1.38 in the last 60 days
Have not sold any long positions in several months, but have been trading oil ETFs on the volatility in that market.