A Stock Cramer Never Recommends
A Penny Stock that should be bought aggressively for the long term
TheStreet, Inc. (NASDAQ: TST $1.94)
- 32.1 million shares outstanding
- $59.7 million market capitalization
- $75 million in cash and equivalents = $2.34 per share
- $0 debt
- $0.10 annual dividend per share, approximately 5.5% yield
- Jim Cramer owned 2,657,210 shares as of January 24,2012
TST stock is trading less than book value. It's very difficult in today's environment to find any stock that is not trading at a premium. Most of the market is higher than it was in October and finding discounted investments is nearly impossible.
(Digital) Content Merger & Acquisition Activity.
Advertising Industry Statistics
TheStreet (TST) year end stock prices
- 2007 $15.92
- 2008 $ 2.90
- 2009 $ 2.40
- 2010 $ 2.67
- 2011 $ 1.68
(Stockdiagnostics charts: OPS 20q, OPS 5yr, FCF 20q, FCF 5yr, LTGR,GFNN)
Fundamentals have declined over the last 5 years. Weakening fundamentals are nearly always avoided on the long side, but I find the shares attractive on the health of the company's balance sheet and the low Operational Cash Flow multiple the stock currently trades.
- FY2011 Operational Cash Flow = $3,558,977.00 or $0.11/share
- OPS MULTIPLE PER SHARE: 17X OPS
The online financial information sector is here to stay and Thestreet is a pioneer in the space. I believe TheStreet will be acquired at some point at premium to it it's current cash value of $2.34.
TheStreet, Inc Annual report
TheStreet, Inc. Management Presentation
I'm not sure if Cramer is allowed to tout this stock, but if he could, it would get a big United States Booo-Yaaa!
Tom Renna, Equities Research, LLC