Back on June 13, we recommended shares of 24/7 Real Media (TFSM) at a price of $7.19. Since that time, the stock has been on a bit of a roller coaster ride, climbing to nearly $9.00 a share and then dropping back to close yesterday at $6.88.
No real news has come out specifically about 24/7, although some negative news out of Yahoo, Digitas, and Amazon has dragged down the Internet sector as a whole.
24/7 reports earnings next Wednesday and there’s no reason to think the company will disappoint. The bad news out of Yahoo and Digitas were largely company-specific (Yahoo delaying its new search ad platform and Digitas losing a couple of large accounts) and the underlying fundamentals for the online advertising business overall remain very strong.
Needless to say, at $6.88 as share, we think this is a tremedous opportunity to invest in a leading diversified (in terms of product and geography) online advertising company.
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