Thx,
Kevin
With market cap of only $26M, it is not a company we follow closely. As a media content company, it has a decent revenue base of $28M (last 12 months), some cash ($4M) and recent positive cash flow. It has lost money since inception (the Q3 showed its first profit). There are no analysts and thus no estimates. Sales of $9.6M rose 44% in the quarter. Net income was $0.7M. Its subsidiary Chatterbox (51% owned) is now listed on the Bombay Stock Exchange. The press release was light on details but the growth was solid and first-profit is a key milestone for a company. It is hard to predict its success here. It has grown nicely over time and is doing the right things. However is small size means high volatility, and the business can be economically sensitive. We are unsure of its competitive advantages. Insiders own 11%. We would consider it an interesting micro cap but too small and risky for a general endorsement.