February 6, 2006
SpeculatingStocks.com Stock Pick: Mamma.com Inc. (MAMA)
Stock Price: $2.86 (long-term strong buy)
"Mamma.com is the self-proclaimed "Mother of All Search Engines." The company uses Internet marketing solutions to drive business."
Industry: Diversified Communication Services
Market Cap: $34.21 million
MAMA News Stories
January 31, 2006: Mamma.com Launches Desktop Search Powered by Copernic...
January 17, 2006: Copernic Desktop Search Ranked #1 By Germany's PC-WELT
December 22, 2006: Mamma.com Inc. Acquires Copernic for $15.9 Million &...
Bottomline: MAMA has been volatile to the upside since the acquisition of Copernic on December 22nd. At one point, MAMA shares exceeded $5.00 on January 11th on over 3.8 million shares traded. This company has grown from $8.9 million revenues in 2003 to $15.8 million in revenue for 2004 with a profit of over $1 million. 2005 results will be out in the near future. Still, MAMA is trading at just above its book value of $2.67.
Right now... There are only 11.96 million shares outstanding in this small search firm. Search is only going to grow as it has become one of the few effective ways to advertise on the Internet. Mamma.com is now fostering Copernic, an acquisition which holds promising desktop search technology. Desktop search is rapidly becoming a hot area. Right now, if an investor wants to play the desktop search space, they would be amiss not to look at MAMA.
Technical issues... MAMA has strong support at its level and may break out again in the near future. This stock has really tightened its trading range over the last four trading days.
This Copernic acquisition was important for MAMA, it will bring a wealth of new vision into the company as well as top and bottomline growth to Mamma.com financials. The market has yet to reward MAMA for this accretive and well done acquisition.
SpeculatingStocks.com Target Price: We expect MAMA to jump around and reach $5.00 within the next three to six months.