CNET is a company with some great online brands and content.
It’s a stock I have bought and sold many times: bought it when it was unfairly cast aside, sold it when rumors far outpaced reality ($2 billion buyout rumors anyone?).
I think that when Mr. Shelby Bonnie was asked to leave, it increased the chances of CNET eventually being acquired. Of course, at a time when companies like Google are praised for buying YouTube and Yahoo! is forced to buy growth in the shape of Facebook; I am not sure if a CNET acquisition is going to cause investors of the acquiring company to rejoice quite as much. The company is growing, but not like younger companies.
Today, CNET reported that its traffic grew 13% year-over-year, as did revenues. It did not disclose profit numbers though, leaving a pall over its shares. Despite this, shares rose 4.5% after the market close, when it announced the traffic and revenue hike.
CNET has a lot under the hood. I do not own shares, figuring that prolonged delays in the full reporting of its 3rd quarter financials would further cause the stock to drop. It’s already down 40% this year.
While the pop in the stock could be temporary, at the $7.50 to $9 range, CNET is a relatively safe investment, the stock can rise to $13 once the current climate changes; CNET remains one of the few independent plays that could make a material difference to a media’s holdings. For my thoughts on the share price, click here.
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