Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: It's almost Halloween, and Monster Worldwide (NYSE: MWW ) is handing out treats -- increased guidance for this year, and an earnings beat -- that have prompted a 23% spike in its stock price.
So What: Our 9.6% national unemployment has had investors running away from jobs-advertiser Monster. But rather than report frightening results, the company's now telling us all is well, and that this year's revenue could come in 8% higher than Wall Street had forecast.
Now What: Citigroup upgraded the shares in response to the news, for good reason. After buying HotJobs from Yahoo! (Nasdaq: YHOO ) , Monster now basically owns the Internet job advertising space. (At least until Google (Nasdaq: GOOG ) or eBay (Nasdaq: EBAY ) partner Craigslist decides to take it away from them.) Plus, Monster was doing just fine before buying HotJobs, which contributed a bare 3% to the company's 26% rise in quarterly revenue.
That said, Monster is still unprofitable, and it trades today for nearly 49 times free cash flow. If I owned the shares today, I'd be counting my good fortune, pocketing my profits -- and waiting for a better price to re-up.
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