February 28, 2005

SpeculatingStocks.com Stock Pick: GuruNet Corporation (GRU)

Stock Price: $15.94 (short-term strong buy)

We originally first released GRU as a stock pick at $8.40 on January 14th with a 6-12 month price target of $30. We then reiterated GRU as a long-term strong buy on January 31st at $13.15. GRU went to an all-time high of $28.50 on February 7th. Our first release of GRU as a stock pick was at $20.51 as a long-term strong buy with a $75 price target by year-end.

This is the fourth time we have released GRU as a stock pick in the last month and a half. We are confident this company will succeed with their ads based revenue model proven by Google, Yahoo, and lots of others. The niche their answers.com site is building is nothing short of amazing. 40% of searches are informational searches, many of these searches are starting to occur on answers.com as more and more people find out about the site.

Check out the latest Alexa daily reach chart and other traffic statistics. Answers.com is one of the few search sites growing so rapidly.

Revenue numbers are due out in the near future that should alleviate some of the uncertainty out there right now. The most likely cause of the recent price drop is overall sector weakness, uncertainty of the revenue situation, and an overall correction was needed.

SpeculatingStocks.com Target Price: We expect GRU to hit $30 within the next 1-2 months.