Online marketing services company ValueClick (NASDAQ:VCLK) offered upward revisions to its Q4 2003 and full-year 2003 and 2004 earnings projections today, boosting its stock as much as 15% to join the Nasdaq's biggest percentage gainers.

The company raised its Q4 revenue guidance 8% from $25 million to $28 million, and bumped its EBITDA range roughly 6% from $4.5-$4.9 million to $4.8-$5.2 million. Management also increased its full-year 2003 revenue and EBITDA numbers, but maintained its diluted EPS estimate for Q4 at $0.04 and for the year at $0.10.

What made investors euphoric and vaulted the stock price was the company's 2004 projections of 50%, 90%, and 130% jumps in revenue, diluted EPS, and EBITDA over what it expects for 2003. Yowza. Looks like online advertising has a high beta -- clinically depressed in downturns, manic in upturns.

ValueClick, like its larger competitor DoubleClick (NASDAQ:DCLK), has morphed from a company that makes money from banner ad clicks to one that offers customers one-stop online marketing. ValueClick used its cash stash and stock to buy software and services companies Mediaplex, AdWare, BeFree, and Commission Junction at bargain prices during the online advertising downturn, expanding beyond its ValueClick Media base.

Many value investors flocked to the stock when it was selling below its cash per share and had cut its cash burn, but sold after the stock flew. (Whitney Tilson did, as he explained yesterday.) But today, if the company is worth its projected 90% earnings growth rate, its shares may be reasonably priced or even underpriced at about 36-45 times forward earnings. And perhaps it's a steal if you take the EBITDA projected 130% growth and notice that at mid-day the stock sells for a 13-14 times multiple.

ValueClick has rewarded investors 224% since Matt Richey picked it at $2.74 for our 2002 version of our annual stock-picking guide. Guess what? Matt's got two more prospects in this year's Stocks 2004 -- available now!