Online advertising specialist ValueClick
Like Google
The integration of the Yahoo!
Even after today's jump, ValueClick arguably remains value-priced in contrast to rivals Google and Digital River
The company isn't squandering its opportunities these days, and is in the habit of putting its cash flows to good use by buying back a lot of its own stock. ValueClick generated $90 million of free cash in 2010. The $42 million buyout of investing resource Investopedia was balanced out by the $45 million spinoff of advertising lead service Web Marketing Holdings, so that's a wash.
However, ValueClick freely admits that there are virtually no barriers to entry in the online marketing industry, and is facing down a bevy of bigger, stronger, and better-performing rivals. Our CAPS community gives the stock a less-than-flattering two stars out of five, and the 8.7% short interest in the stock includes a thumbs-down position from our own Big Short newsletter. From that point of view, this jump looks like a signal to open a short position as ValueClick is hovering around 52-week highs at the moment.
Want to learn more about ValueClick? Add the stock to your Foolish watchlist by clicking here.