Can Someone Please Throw InfoSearchMedia a Life Preserver?

8 comments

InfosearchMedia, whose share price has recently went from $3.60 to 14... cents, is putting out press releases about insiders snapping up shares of the penny stock. I still don't understand how an SEO company can be public for that long and still be losing money. Is management a bit thick over there or what?

As ebound would say:

Is anyone thinking of investing? Any thoughts on this as long term investment?

Comments

There have to be better investments

At a 14 cent share price, they have market cap of about $6 million, and annual sales of about $10 million. Would you pay $6 million for this company? I wouldn't.

They are losing money under GAAP, and more significantly their quarterly cash flow figures are all strongly negative. Their revenues are lower this year than last. Reading their description, their SEO skills seem less than avante garde, and I could see them losing more market share to competitors.

Being public for a company this size is a bad thing, not a good thing. They would be much better off if they were private, because all the regulatory overhead of being public (SEC filings, Sarbanes-Oxley compliance, etc.) still has to be funded even though they are now basically a pretty small company. They get no benefit from being public - they functionally have no access to the capital markets at a 14 cent share price; no investment banks cover them and you can only buy them over the counter. If they are going to survive, at some stage they need to be taken private so they can shed the public company overhead.

Of course, if you know the company and what they do, think they do great SEO, and see a path where they start throwing off cash with a little streamlining, that's a different story. I don't see that being in the cards for a company selling article writing services and running a very lame Yahoo Answers clone.

SnakEOil

I didn't know the SEC allowed SnakEOil to be publicly traded as it's not a real commodity or even something that works the same week after week, it's crazy is what it is.

When a firm like that starts paying it's guys 140,000 a year...

When a firm starts paying it's guys 140,000 a year..

Mr. Frank Knuettel II, 40
Chief Financial Officer, Principal Accounting Officer and Member of Advisory Board $ 142.00K

Yahoo's Report on salaries of executives

It's sitting around with 63 'SEO experts' and still comes up as a Virual blank page in Google it does raise a few questions.

Operating Cash Flow (ttm): -4.47M
Total Cash (mrq): 4.83M

On paper, if no changes at all.. the company has a serious problem that is going to happen shortly.

Finance Report

I am by no means 'slamming the company' in fact it's cool since it's pretty much the only SEO company that is on the market.. abit the pink sheets...

If I were them I would start figuring a way to cut some of those salaries.. and as Raycam noted... they should not be public... a firm with that level of revenue and that level of manpower should be private.

The firm is similar to a company located across the street that happens to be one of our clients.. they have 60 some employees (it's a web development firm).. their revenues are roughly double what these guys are doing.. and they are still bitching that they are not 'efficent enough'.

The point being that with those levels of revenue they should have 20-30 employees... not flowing at 60 some and having the overhead of public trading reporting.

I didn't think it looked good

I didn't think it looked good for them as SES San Jose when they had an empty booth with a cardboard sign, flowers and nothing else.

content is broke?

the story should end with the perfect flowers

but do me the favor, I'd really like to know: did they fail because they thought that content alone would win? Or was their content not actually good enough?

Is there a place for content?

Is the web growing so fast that thin-section, partial scrapings of content are as thick as you dare go right now to make money?

I think management is

I think management is probably a bit thick. IMHO.

Yep

Quote:
I think management is probably a bit thick. IMHO.

I would have to agree with you there - I had a chat with some of them at Pubcon Boston and something just didn't seem to be clicking...

I would imagine

that a ton of their "seo copywriting" clients were tied in with, and/or orignated from articleinsider... so i can't imagine that those relationships went untarnished when that site got nuked more or less on all 3 biggies... let alone the revenue loss from that product.

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