TheStreet.com, Inc.: One-way traffic
TheStreet.com, Inc. (Nasdaq: TSCM)
New York, N.Y.
http://www.thestreet.com
52-week low / high: $8.20 / $14.83
Shares Outstanding: 29.47 million
Market Capitalization: $412.34 million
If you follow the stock market, and we’re assuming you do, you’ve no doubt heard of TheStreet.com, Inc. (Nasdaq: TSCM). The multimedia investment news company, co-founded in 1996 by well-known business journalist James Cramer, brought in an average of 6.3 million monthly unique visitors to its network of online properties, according to its third-quarter statement.
During that most recent three month period, ended Sept. 30, TheStreet.com reported that revenue increased 24% to a record $16.1 million, from $12.9 million a year earlier. The increase helped lift net income 22% to $3.8 million, or $0.13 per share, compared with $3.1 million, or $0.11 per share, during the third quarter of 2006. Analysts were projecting earnings of $0.12 per share.
Flush with $38.9 million in cash and no long-term debt, TheStreet.com has recently embarked on a buying spree. On Aug. 2, it announced the purchase of Corsis, a provider of solutions for advertisers, marketers and content publishers looking to implement online promotional campaigns. The acquisition includes the advertising site Promotions.com and is valued at about $20.7 million.
In a statement, CEO Thomas Clarke said he hopes the buyout will allow TheStreet.com to provide advertisers with more integrated marketing campaigns and expand gross margins. The acquisition moves TheStreet.com one step closer to becoming a one-stop shop for advertisers.
As of January 2007, the company also owns a 49.9% stake in stock investment social networking site www.stockpickr.com and has the right to sell advertising on the site.
In an attempt to muscle its way into the online consumer banking marketplace, on Nov. 2 the TheStreet.com announced the acquisition of Bankers Financial Products Corp., which includes www.BankingMyWay.com and www.Rate-Watch.com, for about $25.0 million.
Rate-Watch.com has more than 5,700 financial institutions subscribing to its services and provides pricing solutions for banks and credit unions, while BankingMyWay.com uses that data to allow consumers to search for the best banking rates.
TheStreet.com recently attracted the attention of New York-based venture capital firm Technology Crossover Ventures, which purchased a stake in the company for $55 million.
While it’s too early to tell conclusively what results this frenzy activity will yield, TheStreet.com appears to be on solid footing and well on its way of achieving the stated goal of being “the premier online destination for all areas where money and life intersect.”
The company, which went public in May 1999 and had 248 employees as of Sept. 30, has seen its total revenues rise 44% from 2004 to 2006, when it booked revenues of $50.89 million. Analysts project the figure to climb 28.5% to $65.40 million in 2007.
TheStreet.com projects that 2008 total revenue will be evenly split between revenue from marketing services and revenue from paid services. During the third quarter of 2007, 57% of revenue came from paid services and the remaining 43% from marketing services.
Analysts are forecasting that the company will close 2007 with earnings of $0.52 per share. Profit in 2008 is projected at $0.70 per share.
It looks like you’ll be reading more about, and from, TheStreet.com.
Note: TheStreet.com, Inc. (Nasdaq: TSCM) is on the “Watch List” of Growth Report, a subscription investment newsletter from Business Financial Publishing, which also publishes SmallCapInvestor.com. As a Watch List company, TheStreet.com displays many characteristics found in successful stock winners, and is being closely monitored for possible inclusion in the Growth Report portfolio at a later date.
