Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, digital financial media company TheStreet.com
With that in mind, let's take a closer look at TheStreet.com's business and see what CAPS investors are saying about the stock right now.
TheStreet.com facts
| Headquarters (Founded) | New York (1996) |
| Market Cap | $107 million |
| Industry | Internet software and services |
| Trailing-12-Month Revenue | $57.2 million |
| Management | CEO Daryl Otte (since 2009) CFO Thomas Etergino (since 2010) |
| Return on Equity (Average, Past 3 Years) | (14.1%) |
| Cash / Debt | $46.6 million / $0 |
| Dividend Yield | 3% |
| Competitors |
Microsoft Morningstar News Corp. |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 94% of the 282 members who have rated TheStreet.com believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars mikeinmadrid and Diagoras.
Two months ago, mikeinmadrid listed several reasons to be bullish on the stock:
- CBS bought CNET for roughly 4.5x sales and Dow Jones (News Corp.) bought MarketWatch for 5.5x revenues. If [TheStreet] is worth 3x sales [TheStreet] is worth at least $6.
- Cramer has signed new 3 year contract. ...
- New CEO & CFO concentrating on reducing costs and increasing sales
Currently, TheStreet.com even trades at a cheapish price-to-book of 1.1. That represents a clear discount to listed rivals Microsoft (4.4), Morningstar (3.7), and News Corp. (1.8).
At the end of last year, CAPS member Diagoras elaborated on the bull case:
They have positive cash flow, and are trading for barely more than their tangible book value, which is mostly comprised of their cash and investments (minus liabilities), so the actual business is quite cheap. TheStreet's management has also improved recently, and has made effective steps to increase their profitability. Given the price of this company versus its assets, they don't need to do much for this company to be a multibagger; continuation of the current efforts will likely be enough.
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