Posts Tagged ‘mama’

MAMA – Q4 2006 Earnings

By: ispeculatornew | Date posted: 03.11.2007 (12:00 am)

MAMA – Mamma.com Inc. (Nasdaq) (Closing Price on Friday 3/9/07 – $5.19)

Mamma.com announced fourth quarter results on March 7 and surprisingly they managed to report a small profit. However, the stock is still way overvalued based on any fundamental valuation and I would recommend to continue holding your short position.

Mamma.com reported a profit of 0.03 on revenues of 3.57 million. This is a stark contrast to the losses they posted in the previous year but I it remains to be seen whether they can become consistently profitable. Even if they were to make the same amount each quarter next year, which is doubtful, MAMA would have a PE of 43 with Friday’s closing price. That is extremely high. (more…)

MAMA – Update

By: ispeculatornew | Date posted: 02.10.2007 (12:00 am)

MAMA – Mamma.com Inc. (Nasdaq) (Closing Price on Friday 2/9/07 – $5.13)

There have been some interesting developments since my last post on MAMA.

First, the CEO abruptly announced his resignation on January 23. This is never a good sign for a company. However, the share price barely reacted to this news.

Last Tuesday there was a surge in volume and MAMA’s stock price jumped up considerably on no news at all. In my opinion this should raise some eyebrows about someone trying to manipulate the share price (or maybe someone trading on inside knowledge). A couple of days later MAMA issued a press release stating they had extended an existing agreement with Yahoo Canada. This press release shouldn’t have affected the share price considering the agreement has been in place. However, the share price opened up considerably higher than the previous close. It has promptly been going down since. (more…)

MAMA – Accumulate Short Position

By: ispeculatornew | Date posted: 01.11.2007 (12:00 am)

MAMA – Mamma.com Inc. (Nasdaq) (Closing Price – $5.90)

I would continue holding your short position in MAMA and if you are a patient investor I would recommend shorting more. MAMA may not drop immediately but eventually its share price is going to correct and reflect its fundamentals.

If you are looking for a short term gain I would not recommend shorting MAMA. There are a lot of daytraders and greater fools buying MAMA right now and they may continue to send MAMA up in spite of its ridiculous valuation. However, the momentum will die out and MAMA will assuredly drop. (more…)

MAMA – Accumulate Short Position

By: ispeculatornew | Date posted: 01.05.2007 (12:00 am)

MAMA – Mamma.com Inc. (Nasdaq) (Closing Price – $5.60)

If you followed my advice and shorted MAMA at $4.89 you might be a little worried that it has now risen to $5.60. However, shorting a stock requires the same amount of patience as buying a stock.

There is still a major disconnect between the fundamentals of MAMA, which are terrible, and the recent runup in its share price. The runup has been based on hype and nothing else. It may take a while for the share price to reflect this, but eventually it will. (more…)

MAMA – Initiation of Short Recommendation

By: ispeculatornew | Date posted: 12.30.2006 (12:00 am)

MAMA – Mamma.com Inc. (Nasdaq) (Closing Price on Friday 12/29/06 – $4.89)

It is never wise to chase gains. Some people will keep buying a stock even after it has had a significant runup. They will hope the run will continue and that a greater fool will buy the stock at a higher price than them. This is the case with MAMA and now is a great time to short the stock.

MAMA is a search engine that recently announced that it is adding video search to its website. The hype surrounding this sent the stock from two dollars to over eight dollars in less than a month. Well the party is over and the stock price is crashing back down. (more…)