September 28, 2004

SpeculatingStocks.com Stock Pick: Mamma.com Inc. (MAMA)

Stock Price: $6.34 (long-term strong buy)

Mamma.com, The Mother of All Search Engines, is focused on delivering online marketing opportunities for advertisers through its online search engine. It utilizes keyword search listings, graphic ad units, and opt-in email.

The search space is still in its toddler stage and has a lot of avenues to grow. Advertising growth is almost limitless for search companies. Mamma.com is one of the smaller search engines, but there is still time for it to create its own niche.

The company only has a market cap of $66 million compared to Google with a market cap of over $4 billion and Yahoo of over $44 billion. Mamma has decided to grow through acquisition instead of organically. This caused a sell off, but in the long run it could put them ahead of their competitors.

Mamma has announced their plan to buy back over 5% of their issued/outstanding shares. This should cause the price to go up in the long run. With $27 million cash on the balance sheet, the company has room to go in a lot of directions.

SpeculatingStocks.com Target Price: We expect MAMA to rise above $12.00 in the next 6-12 months.