Analyzing MeetMe, Inc. (MEET) Almost One Year Later
MeetMe, Inc. (MEET) share price has shot up over 300% since our recommendation and has a 52-week high of $8.11. Publisher Thomas Rice mentioned the company's financial outlook in the monthly recommendation analysis as a strength due to the potential advertisement revenue growth.
The best part about the Bowser method of picking stocks is that these fundamentally sound companies are more likely to surprise investors with the allocation of assets as it typically doesn't pose a threat to liquidity. MeetMe has followed this pattern, certainly rising so dramatically due to its ability to surprise investors.
Not only has MEET consistently beaten on earnings, but the company has increased its active users, acquired Skout, and announced a large share repurchase program. This indicates growth, impressive asset allocation with synergistic acquisitions, and a constant addition of value to keep shareholders happy.
The bearish article that was entirely based on speculation hit MEET hard as it questioned the company's ability to keep its platform secure. The Seeking Alpha contributor tried to drive long-term investors away by implying that a cascading series of events would occur once the firm's advertising realized the danger associated with using the application.
Regardless, analysts have not lowered targets, short interest has increased, and the share price has rallied. This anticipation of larger firms pulling their advertisements has no merit, and as investors can see, advertisements have remained consistent.
With daily active users surging from the Skout acquisition and a strong financial situation, the increase in MEET short interest is not worrisome as they will have to buy these short sellers will have to buy their shares back soon enough.