New Trade: Long Dice Holdings ($DHX) & Short Monster Worldwide ($MWW)

By: ispeculatornew
Date posted: 03.11.2013 (3:00 am) | Write a Comment  (0 Comments)

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There was not much movement this week in my weekly trading as my average return remains close to 0%. As always, you can see my live tech long & short trades and performance here:

2013 Long & Short Tech Stock Picks

Today’s trade is one that I’ve made several times over the past few years. This time it wasn’t as obvious. DHX has outperformed MWW quite a bit in recent months leaving me with a less obvious winner. That being said, they still trade at almost identical forward P/E ratios which I don’t think can be justified. You can see the numbers here:

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Just take a look at the revenues growth in recent quarters. They do have comparable lines but DHX has displayed strong growth every single time…!

DHX Revenue Quarterly YoY Growth Chart

DHX Revenue Quarterly YoY Growth data by YCharts

Long Dice Holdings (DHX)

Dice has been able to grow at a faster pace than Monster simply because of its focus on a few niche industries rather than trying to be solution to all for employment searchers and employers. It does have much better margins than Monster and I’m counting on that trend keeping up.

AOL

Next earnings release: April 25th 2013

Short Monster Worldwide (MWW)

Monster has an incredibly strong brand but has been unable to leverage it correctly and in many ways looks like the Yahoo with little to no growth and struggling to compete against smaller niche services (such as Dice Holdings) but also more recent competitors such as LinkedIn. Monster is simply unable to grow enough to justify its P/E ratio.

DMD

Next earnings release: April 26th 2013

If ever any of you are interested in my technology stock thoughts and picks, I invite you to my tech stocks newsletter, it’s free and you’ll get an email bi-weekly with additional thoughts on many of these names:

Disclaimer: I will enter into the trade this morning but have no positions as of this time…

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