Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, mobile data service specialist Motricity
With that in mind, let's take a closer look at Motricity's business and see what CAPS investors are saying about the stock right now.
|Market Cap||$1.14 billion|
|Trailing-12-Month Revenue||$122.7 million|
|Management||Founder/CEO Ryan Wuerch
CFO Allyn Hebner
|Trailing-12-Month Return on Equity||(8.7%)|
|Cash/Debt||$71 million / $0|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 48% of the 69 members who have rated Motricity believe the stock will underperform the S&P 500 going forward. These bears include Denarii06 and All-Star TSIF, who is ranked in the top 0.5% of our community.
Late last month, Denarii06 touched on Motricity's seemingly unsustainable stock price: "Overhyped stock with only 4 months of public history behind it. Cramer got behind it big time. ... Due to its low float it is very volatile so as soon as the momentum crowd abandons it, the crash will inevitably follow."
Since its IPO in June, Motricity shares have more than tripled, leading many Fools to believe that a pullback of sorts is pretty much inevitable. Currently, Motricity trades at a substantial forward P/E (37) premium to portal and storefront rivals Amdocs (10.1) and Ericsson (11.1), as well as data services foes like Google (17.5), Microsoft
CAPS All-Star TSIF also believes that the Motricity bear case all boils down to price:
Motricity is certainly motoring along after [its] IPO four months ago. It quickly bled down from it's intro near $10 per share to the mid $6's a short month later. The last two months, however have been very good to Motricity as analyst upgrades continue to be issued. ... The reality last quarter was that their [$0.07 EPS] currently puts them with a whopping ... P/B of 5.
What do you think about Motricity, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Google is a Motley Fool Inside Value and Rule Breakers recommendation. Microsoft is an Inside Value choice, and Motley Fool Options has recommended a diagonal call position on it. The Fool owns shares of Google, Microsoft, and IBM. Try any of our Foolish newsletter services free for 30 days.
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