Luckily I sold ANGI near $19 a few weeks ago. I sold it because of my aversion to earnings and how they tend to murder people who trust them. Looking at these numbers, I am shocked at how bad this company is being managed. They are in a sweet spot and should be killing it. I call into question their decision to spend inordinate sums of money on marketing, and poorly to boot. If you’re gonna spend $20 million per quarter on marketing, you better grow your damned business.
Frankly, there isn’t any excuse for this abysmal execution. Management should be changed, ASAP.
On the plus side, even at the lowest end of 2014 revenue projections, ANGI is trading 4x sales. It shouldn’t get much lower than 3x, or $11 per share. If ANGI gets down to $11, I will be buying with both hands.
Eventually, this works big. Once they figure out how to scale the business and stop wasting money on idiotic teevee commercials, I think ANGI will trade up to 10x sales, maybe even higher. No one trusts the stock because management has proven to be inept.
But there is value to the enterprise and the stock will not stay down for long.