We’re recommending 24/7 Real Media (TFSM), currently trading at $7.19 (06/12/06 close).
Company Overview:
24/7 Real Media is a leading interactive marketing and technology company. It provides media and search services, coupled with a seamless platform of serving, targeting, tracking and analytics technologies. The company is headquartered in New York, with offices in other major U.S. cities, Canada, Europe and Asia.
Why We Like It:
*key player in fast growing online advertising market (both display ads and paid search)
*geographic diversification (operates in US, Europe and Asia)
*It’s down 40% from its 52-week high of $11.79
*Reasonable valuation: at $7.19 per share, 53.5 million fully diluted shares outstanding, and $27 million of net cash, TFSM has a total enterprise value of roughly $321 million.  TFSM will generate around $195 million in revenue and $19 million in EBITDA this year (company guidance and Wall Street consensus estimates) and should be able to do around $25 million of EBITDA next year. So, TFSM is trading at around 17x 2006 and 13x 2007 EBITDA. With cash flow growing at 25-30% per year TFSM is trading at a very reasonable valuation.
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ya got 2many shares in ya post
Shares Outstanding 48,454,000
my share count reflects fully diluted shares (includes options)
Continuing the Discussion