What will it take to get United Online
By introducing a quarterly $0.20 per share cash distribution, United Online's yield has gone from nil to a whopping 9% overnight based on yesterday's share price. If that's the kind of move that will merit a second glance from a jaded market, so be it. Wall Street might like what it sees.
Even as Time Warner's
OK, so United Online is generous, brainy and has a decent personality. What's the catch? Ugly income statements? Not exactly. Earnings came in at $0.18 a share for the March quarter -- flat with last year's showing -- on a 21% uptick in revenues. Online advertising is growing even faster at the company, so it's not exactly the kind of stock that you would be embarrassed to be seen in public with.
Take a closer look, and you will begin to see the flaws: a rise in stock-based compensation expenses and a lack of earnings growth, for starters. However, at least with that 9% yield, waiting for something to happen is no longer a complete waste of time.
Some related headlines that may yield you more than just money:
- Other sites got some more market loving after their photo-sharing snaps.
- The company announced the acquisition of Classmates.com last year.
- Last summer it turned to RadioShack
(NYSE:RSH)to help grow its user base.
Longtime Fool contributor Rick Munarriz has been online since the early days of GEnie and CompuServe -- long before AOL or Prodigy came around. What a nerd! The Fool has a disclosure policy. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early