Tag Archives: Media
Big Year Ahead For Social Media And Internet IPOs
Earlier this week, I talked about the successful IPO of Millennial Media (MM). Remember, the stock doubled on the first day of trading. And while MM has given back some of the gains, the shares are still trading at well above the IPO price.
So what other exciting social media and internet IPOs are coming up this year?
Sirius Tries to Block Liberty Media Move
NEW YORK (TheStreet) — Sirius XM Radio is appealing to federal regulators to prevent Liberty Media Corp. from taking over the satellite radio company.
On Friday, Sirius revealed in a filing to the Federal Communications Commission that Liberty has asked the FCC for permission to take “de facto” control of Sirius, The Wall Street Journal reported.
But Sirius asked the FCC to “dismiss or deny” the application, the Journal added.
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Click to view a price quote on SIRI.
Click to research the Media industry.
The Financial Media Continues to Misunderstand the Stock Market
Much ado has been made about the fact that the Dow Jones Industrial Average is flirting with the 13,000 mark; the same level it was on May 19th, 2008 just before Lehman Brothers collapsed and led the total meltdown of the world financial system. The problem? Once again, this thinking points out how totally clueless and pathetic most of the financial journalists in the world are. (That is one of the reasons I love really good financial writers who are knowledgable about their topic; they are rare and should be valued.)
We are coming up on the four year anniversary of that event. That means the Dow Jones Industrial Average has churned out 16 quarters of cash dividends. Those are real checks, consisting of real dollars, mailed to the owners of the companies that make up the Dow. It represents real profit earned by McDonald’s selling hamburgers and 3M selling Post-It notes, Coca-Cola selling soft drinks and Johnson & Johnson selling pharmaceuticals and baby lotion.
To make the point, imagine you had bought 1,000 shares of the Dow Jones Industrial Average SPDR ETF $ 129.71 per share when it opened on March 19th, 2008. Your total investment would have been $ 129,710 plus a couple of bucks in commissions to your stock broker. In that time, you would have collected $ 10.368 in cash dividends per share, or $ 10,368.
Last Friday, the fund closed at $ 129.66 per share, or $ 129,660 for your investment. You’d have made $ 50 in capital gains. That isn’t the point. You would also have $ 10,368 in cash sitting in your brokerage account from the dividends that had been distributed to you. These “journalists” don’t seem to count that is income. You’re actually up around 8% since then thanks entirely to the dividends.
But that is only a first level analysis. To adjust for inflation, you would need to have at least $ 140,760 in your investment account to break even. With your dividends, you are now at $ 140,028. On a pre-tax basis, you are, more or less, in the same economic place you were before looking at purchasing power.
Yelp IPO: A Good Sign For Social Media
The parade of internet and social media rolls on.
Just last week, we saw the much anticipated IPO of Yelp (YELP). The online city guide and review site is perhaps the second most anticipated internet IPO this year… behind only Facebook in popularity.
Social media frenzy has sent IRYS into orbit
IRYS Is Growing So Fast Its Chart Glows In The Dark!
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Should You Invest in Groupon, LinkedIn and Other Hot Social Media Stocks?
The social media freshmen are entering their sophomore year. LinkedIn (Nasdaq: LNKD), Groupon (Nasdaq: GRPN) and Zynga (Nasdaq: ZNGA) have shaken off the post-IPO jitters, so now investors have the clearest picture yet of how large these companies can grow in the coming quarters and years.
[block:block=16]I've written before about the dangers of investing in IPOs right out of the gate, especially for these social-media darlings. But now that the proverbial smoke has cleared, can we can get a clear view of the path ahead for these companies, and are shares even worth your investment?
As a quick recap, LinkedIn, which operates a social media website for professionals, has been surging after fourth-quarter results were released. Meanwhile, daily-deal website Groupon and Zynga, which makes popular social media games for Facebook, pulled back after their numbers came out. Still, none of these stocks are bargains in terms of projected near-term results. Each stock trades for at least 50 times projected 2012 earnings and at least five times projected 2012 sales.
Take a look at the table below. I've included other recent IPOs for comparison's sake.
