One of my better picks as a member of the Rule Breakers analyst team was when I recommended The Knot (NASDAQ:KNOT) a year ago. The shares were fetching just $11.81 apiece at the time, and the prospects looked bright for the company.
What is there not to love about a company that is the category killer in online wedding planning? You have vulnerable brides-to-be, willing to fork over tons of money in pursuit of the perfect ceremony.
It's never as easy as that, though. Companies like The Knot and Bankrate (NASDAQ:RATE) have been Wall Street winners by providing industry-specific leads, but others like Autobytel (NASDAQ:ABTL) in auto retailing, InsWeb (NASDAQ:INSW) in insurance, and HouseValues (NASDAQ:SOLD) in realty have struggled.
Tack on a few ordinary quarterly performances out of The Knot lately and I can respect the valuation concerns that Chuck Saletta has as this week's bear. No, I'm not stepping in as the bull this week. I'll leave that up to my buddy Tim Beyers.
So does The Knot belong on your bridal registry? That's what this week's Duel is all about.
Duel on!
- Read the bull argument
- Read the bear argument
- Read the bullish rebuttal
- Read the bearish rebuttal
- Sound off in Motley Fool CAPS
- Vote for the winner
The Knot has risen 57% higher since it was recommended to Motley Fool Rule Breakers subscribers last year. Bankrate is also a Rule Breakers pick. See if you want to get hitched to the growth-stock newsletter by moving in with it for the next 30 days through a free trial subscription offer.
HouseValues is a Hidden Gems selection.
Longtime Fool contributor Rick Munarriz does not own shares in any of the companies in this story. The Fool has a disclosure policy.
