QuinStreet Inc (QNST) a new potential investment

By: ispeculatornew
Date posted: 04.20.2010 (5:00 am) | Write a Comment  (1 Comment)

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Recently, 4 new tech stocks did their IPO and this weekend I took more time to look into them to see if one of them could be added to my dashboard. It does turn out that QuinStreet seems to fit the profile. They are an online advertising company that seems to have a similar business model to Valueclick (VCLK). It is not a terribly crowded arena but anytime you are competing with a player like Google (GOOG), it quickly becomes a challenging business.

Financial Statements?

Even though the company has just gone public, it does have a fair amount of financial history available for investors. You can take a look on Google Finance here. The major thing missing is more background on what has happened since the company used to be private. In general, QuinStreet seems to be growing although not at the pace you would usually expect from a tech IPO. But growth is growth and that is already more than what Valueclick can show off to its shareholders. The main question of course is how the company intends to keep up and accelerate its growth. I did not find much from the company’s website or press releases so I needed to do additional research .

Like any other new company, the amount of information available is fairly limited but I would say that what I found is that QuinStreet seems to be concentrated on a few specific niches, namely education and finances. That would seem like a smart decision but perhaps not one that warrants it current high P/E ratio.

Will I go long or short?

As I had discussed when I wrote about AOL, I usually tend to wait a bit before getting involved to get more information about the company, but I will be following up news and press releases from QuinStreet so you can expect to start seeing more written about it in the upcoming weeks and months with a trade perhaps coming late in the year if the opportunity presents itself. The most obvious trade would be against Valueclick which has a similar model, although it is far more broad in its business (not a positive in my opinion for such a small company).

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1 Comment

  1. Comment by Jesse Pujji — April 21, 2010 @ 10:54 pm

    If you want to learn more about the site, just google “quinstreet research” and check out the 3rd link. It’s an industry primer report put together on Online Lead Generation. Our team is ex-consultants/Wall Street and we’ve analyzed the industry inside and out. Contact us if you want to learn more.

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