Mamma.com reported first quarter results on May 10 and the numbers they released were very unimpressive.

Mamma.com reported a loss of 0.10 per diluted share on revenue of 2.64 million. Search revenues increased but graphic advertising and “other” revenues were down sharply. Last quarter they had “other” revenues of 1.19 million (comprised of search advertising – 0.26 mil, software licensing – 0.7 mil, and customized development & maintenance – 0.23 mil). This quarter they said “other revenues such as software licensing and customized development and maintenance support” totaled 0.127 million. I am not sure if search advertising is part of the “other” revenues since they said “such as” and didn’t provide a breakdown of “other” revenues. However, even without search advertising taken into account this is a huge decrease in “other revenues” from the previous quarter.

The reason I am pointing this out is without such a huge increase in “other” revenues last quarter Mamma.com would of posted a loss as usual. This in my opinion would of sent the stock price reeling and consequently would of made my short recommendation look a whole lot better. However, Mamma.com reported a surprise profit and the result was the share price has been able to stay afloat until they reported this quarter’s results.

Even with the pitiful results they reported this quarter the share price is managing to hold up. I think part of this has to do with the general lack of fear in the market right now. People are buying terrible stocks like MAMA and they are not getting punished. I still think the share price of MAMA is going to drop some more. However, if the stock price of MAMA finds support in the next few days I am going to recommend to cover.

Disclosure: I am not shorting shares of MAMA.