May Idea of the Month: Online Advertising IPO Washout

Adding a new speculative stock for our consideration.

Online advertising is a rapidly growing industry, dominated by Facebook and Google (particularly in this country) but still changing rapidly and amenable to new ideas and new technologies. Better ideas and better algorithms allow businesses in this segment to grow rapidly or get acquired at lofty prices by the established players, so it’s always interesting to keep an eye on new and emerging companies in the space.

And after a Spring when many of these emerging stocks, lots of them also calling themselves “big data” or “ad tech” companies, have gotten a post-IPO whipping, I’m going to suggest one such company to you today that looks like a decent speculative growth stock with, after a 50% drop in the last two months, a valuation that I can accept with a straight face.

But first, a few updates on some other companies in our Gumshoe Universe (stocks I write about often, own, or have added to the Irregulars spreadsheet):

Curious about the volatility in Mongolia Growth Group (YAK in Canada, MNGGF on the pink sheets), a stock we’ve written about many times but most recently here? No, I don’t think my writing about it two weeks ago had any impact on the price, but it did get a bit of a spike up when it was picked by the new newsletter over at Stansberry, S&A Global Contrarian, as the recommendation for this month on May 23.

How do I know? Did I sneak around and get a tip? No, I’m afraid I heard from… a PR flack. Harris Kupperman and the folks at Mongolia Growth Group have been trying to raise their profile recently, quite aware that they’re going to need to get more attention (and more investors) if they’re going to participate more actively in the next phase of development in Ulanbaatar, and they’ve been hitting me with press releases pretty actively for the past few months. The latest one included a copy of the Stansberry recommendation, I don’t know if the Stansberry folks gave permission for it to be widely disseminated, so I’ll just tell you that Kim Iskyan gave it a “buy up to $2.50” recommendation a week ago and made similar points to what I and Chris Mayer and Harris Kupperman have made in the past, that they should be a beneficiary of the continuing mining boom without direct mining exposure (they’re ...

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