May 21, 2004
SpeculatingStocks.com Stock Pick: EDGAR Online, Inc. (EDGR)
Stock Price: $1.01 (long-term strong buy)
EDGAR Online, Inc. gives clientele business and financial information about public companies. They provide information and technology explanations for the financial services industry. EDGAR Online improves SEC filings by organizing and processing them into accessible and searchable format and uses software to find specific information requested by customers. The main sources of revenue are contracts with corporate customers, seat-based subscriptions to Website services, sale of technical services and data from other sources into their products and services, as well as advertising and other e-commerce based revenues.
EDGAR’s leadership has served as a stable foundation since its beginning in 1995. In fact many of the current officers and directors have been with EDGAR since the late 1990’s. Marc and Susan Strausberg, co-founders, have sat on the board of directors since 1995, with Mr. Strausberg holding the position of Chairman of the Board of Directors. The company’s other officers and directors have a broad range of experience consisting of accounting, marketing, and banking.
EDGAR online reported first quarter 2004 subscription growth of 13% over the same period last year and up 4% from the previous quarter. The first quarter, ending March 31, 2004, also experienced strong growth in the company's core subscription business. Since the company’s launch subscription profits have grown incrementally each fiscal quarter. The average annual revenue reached $247 per subscriber, an increase of 17% from the first quarter of 2003 and an 8% increase from last quarter.
The company’s future development and stability is apparent by their president, Susan Strausberg, “This quarter's results continue to demonstrate our shift from lower margin technical services towards our core subscription business and digital data feed services. The foundation for our future is solid and we believe our level of customer satisfaction is very high. We continue to focus on revenue growth, improving already solid renewal rates, penetrating new markets and introducing new products and enhancements. Looking forward, we expect to see sequential overall revenue increases every quarter and expect year-over-year increases beginning in the third quarter of 2004."
SpeculatingStocks.com Target Price: We expect EDGR shares to reach $2 by the end of 2004.