- Cramer's Mad Money - Angie's List For Self-Improvement (9/15/14)
By SA Editor Miriam Metzinger:
Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Monday September 15.
Angie's List (NASDAQ:ANGI). Other stock mentioned: Yelp (NYSE:YELP)
Angie's List (ANGI) is a website that specializes in reviews and is one of the "most hated stocks out there." It has been cut in half since the beginning of the year. ANGI is fighting to stay relevant. It has a cash flow deficit and a plethora of problems. However, it is possible management could turn itself around. ANGI has a robust user base, and another tech company could buy Angie's List and revamp it. The review space is hot right now, and Yelp (YELP) could also be acquired, but it might not want to be taken over.
Angie's List has more problems with its business model than Yelp. It is charging a membership fee for services others give away for free. It isn't focused Complete Story »
- More Reasons To Short Angie's List
By Ray Bawania:
Originally published on Aug. 1, 2104.
The context, a one year chart of Angie's List (NASDAQ:ANGI). And yes, that is a 62% drop in 12 months:
(click to enlarge)
Using the beta from Yahoo Finance (which uses 3 years of monthly returns vs the market): ANGI has a beta of -0.56 (source: Yahoo Finance, Yahoo Beta Help); you would think that in a significant market correction, Angie would move opposite to the index. This won't be the case. The stock had its large increase in the first 2 of those 3 years and has seen a steady decline over the last 12 months. The forces that are moving the markets higher (whether you argue it's QE or other fundamentals) have helped prop ANGI, but will let the bottom fall out once the market corrects.
Analyst ratings fell from target price of to .Complete Story »
- Angie's List - Time For Plan B
By Jeremy Blum:
Angie's List (NASDAQ:ANGI) in its present form is a subscription model. Customers pay to access users ratings on various services such as contractors, auto repair and healthcare and give their own ratings. As of June 30, 2014, ANGI had 2.8 million members paying an average of a year. The annual fee may not seem like much, but it is a lot more than direct competitor Yelp which provides its service for free. Charging for a service given away by others for free is a losing proposition. To give an idea of the impact, Yelp grew revenues by 61% year over year in the quarter ended June 30, 2014. ANGI's revenues only grew 33%. Yelp was able to get its growth with a sales and marketing cost of 53.8% of revenues. ANGI's sales and marketing cost was 83.8% of revenues. ANGI is spending more on marketing and getting much lessComplete Story »
- Angie's List: Expect A Liquidity Crisis If Nothing Changes
By George Kesarios:
Angie's List (NASDAQ:ANGI) is a very controversial stock. There are those who love it and perhaps more who absolutely hate it. As investors obviously we need to part ways with sentiment and focus on what might make a stock tick, in order to benefit. So looking at any stock through a sentimental prism is usually bad for your portfolio.
There have been dozens of great articles here on Seeking Alpha, so I will not bother with the specifics of the company. But if you want to know my opinion of the stock, please consider my article from June 2013, where I said the stock should be sold short (Angie's List's Working Capital And Shareholder Equity Is Now Zero).
Below is probably the most important chart as I see it, that should concern Angie's List shareholders:
ANGI Total Current Assets (Quarterly) data by YCharts
As you can see fromComplete Story »
- Does Angie's List Have A Credible Evolution Plan?
By Stone Fox Capital:
Angie's List (NASDAQ:ANGI) is one of the few stocks where revenue is surging over 30% annually, yet the stock trades at all-time lows and low growth relative valuation multiples. The company is built on authentic reviews of local service and helps connect consumers directly to its online marketplace of services from member providers. In essence, Angie's List is at the center of the highly valued local market with no imputed value by the stock market.
The market didn't like the Q214 earnings that missed both top and bottom line estimates due primarily to the Big Deal group of deep discounted email offerings that continued to struggle. In addition, the market didn't like the suggestion of actually lowering Q3 marketing spend dramatically below Q2 levels and actually below the levels from last year. Combined with some other moves, Angie's List is moving away from growth at all cost measures for goodComplete Story »
- Angie's List cuts 97 sales jobs
- Is There Hope Of A Turnaround At Angie's List?
By Akshansh Gandhi:
Angie's List (NASDAQ:ANGI) has taken a heavy beating in 2014. The stock is down 44%, and it will be difficult for the company to stage a turnaround. In fact, Angie's List couldn't meet estimates for the sixth consecutive time last quarter. It reported revenue of .9 million, which missed the Wall Street Estimate of .18 million by 1.6%. However, revenue increased 33% year over year, but the company wasn't able to cut its losses. Angie's List recorded a loss of 31 cents per share, or .4 million, which was expected to be 24 cents. Losses increased 28.7% from the previous year's 25 cents.
Angie's List is based on a subscriber model, where members pay to access the reviews and ratings of its products and services. Hence, it is obvious that consumers expect services that are worth the money. But unfortunately, Angie's List couldn't provide services worth its membership fee. ItComplete Story »