OK folks I will admit upfront, being the honest man that I am. I do own this stock. I bought a few weeks ago at $3.15. It is currently at $4.05. Now a bit of background on my investing style. I am more of a value oriented guy, looking for low multiples, P/B, P/E, etc. I like a Margin of Safety. If it works for guys like Buffet, Marty Whitman, Joel Greenblatt, etc. then it's good for this poor schmuck too.
Where did I find this $100 million market cap darling. Ok I was sitting and brainstorming what to invest in. I thought to myself video over the net is really big. Who are the players. Well Brightcove was one, but they are private. They have big names backing them like Barry Diller, Time Warner, Bain Capital, etc. Lot of players. So that one is out. Then there's Roo. How do I know about Roo. Well I play videos all the time on The Street.com Guess who they use? Yup, our boys Roo. So here's a candidate.
Simply put, ROO is a one-stop Internet video specialist which helps thousands of customers around the globe in the fields of entertainment, content publishing, web publishing and advertising to quickly and comprehensively take advantage of the shifting consumer preferences to watch video via the Internet and broadband-connected devices
What are the +ve and -ve of Roo:
Pluses
1. Growing like gangbusters. Just read the recent news flow on these guys. They are winning contracts hand over fist.
2. On Jan 29 News Corp announced a strategic investment in Roo. Ok now that's when I got in. The stock didn't even budge on that news it was such a small cap back then. News corp making a strategic investment. Hmm, reminds me that they bought out MySpace last year. So don't be shocked if this investment bulges into a BUYOUT!!! I think a couple hundred million is chump change to a company with a market cap of billions.
3. Paul Tudor Jones has invested 3.2 million out of 26 outstanding shares. Now if you don't know Paul Tudor Jones, I suggest you wiki him. Convinced? Good enough for a billionaire. Good enough for you.
4. More insulated from market movements. This is not a mainstream stock so it won't fluctuate with the market if that's something you're seeking.
5. A myriad of great customers including Street.com, Financial Times, Wyeth, Lycos, Dscovery Channel, Sprint, Target, MSN, Honda. Should I go on? Ok excite, Fox News, Associated Press, GM, Pfizer, Virgin music. Ok I'll stop at that one. Enough already, we get the point. ALOT of great customers.
Negatives
1. Still losing money
2. Low liquidity in the stock
3. Trades on the bulletin board
So make your decision and vote if you think Roo is a good speculative investment.
Where did I find this $100 million market cap darling. Ok I was sitting and brainstorming what to invest in. I thought to myself video over the net is really big. Who are the players. Well Brightcove was one, but they are private. They have big names backing them like Barry Diller, Time Warner, Bain Capital, etc. Lot of players. So that one is out. Then there's Roo. How do I know about Roo. Well I play videos all the time on The Street.com Guess who they use? Yup, our boys Roo. So here's a candidate.
Simply put, ROO is a one-stop Internet video specialist which helps thousands of customers around the globe in the fields of entertainment, content publishing, web publishing and advertising to quickly and comprehensively take advantage of the shifting consumer preferences to watch video via the Internet and broadband-connected devices
What are the +ve and -ve of Roo:
Pluses
1. Growing like gangbusters. Just read the recent news flow on these guys. They are winning contracts hand over fist.
2. On Jan 29 News Corp announced a strategic investment in Roo. Ok now that's when I got in. The stock didn't even budge on that news it was such a small cap back then. News corp making a strategic investment. Hmm, reminds me that they bought out MySpace last year. So don't be shocked if this investment bulges into a BUYOUT!!! I think a couple hundred million is chump change to a company with a market cap of billions.
3. Paul Tudor Jones has invested 3.2 million out of 26 outstanding shares. Now if you don't know Paul Tudor Jones, I suggest you wiki him. Convinced? Good enough for a billionaire. Good enough for you.
4. More insulated from market movements. This is not a mainstream stock so it won't fluctuate with the market if that's something you're seeking.
5. A myriad of great customers including Street.com, Financial Times, Wyeth, Lycos, Dscovery Channel, Sprint, Target, MSN, Honda. Should I go on? Ok excite, Fox News, Associated Press, GM, Pfizer, Virgin music. Ok I'll stop at that one. Enough already, we get the point. ALOT of great customers.
Negatives
1. Still losing money
2. Low liquidity in the stock
3. Trades on the bulletin board
So make your decision and vote if you think Roo is a good speculative investment.
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