Last Friday when yours truly suggested MeetMe Inc. (NYSEMKT:MEET) shares were taking flight and were a "buy", I didn't aim to imply it was going to be the next Facebook Inc. (NASDAQ:FB) or LinkedIn Corp. (NYSE:LNKD). It was just a short-term idea assuming the near-term technical clues would get traction. Today's action from MEET seals that deal.
Just for anyone not familiar with the company, comparing LNKD or FB to MeetMe may be comparing, well, not apples to oranges, but red apples to green apples. MEET is a social networking side that groups potential and current friends according to their current geographical location rather than a circle of friends, family, or coworkers. It's specifically designed to facilitate meeting new friends for strictly-social purposes, as opposed to LinkedIn, which is aimed at professional introductions, and Facebook, which caters to connect users with people they already know.
The revenues model is similar to that of LinkedIn, and identical to that of Facebook - page views = revenue, and virtual money within the MeetMe world can be garnered by spending real money, allowing users to participate in that virtual world in a deeper way.
The concept is working relatively well too. Though still erratic, revenue is on the rise for MEET, and the loss is shrinking. Deloitte says it's the 32nd (out of 500) fastest-growing company in North America.
None of those details are important right now, however. What's most important right now is the same thing that was most important late last week - shares have crossed above the 200-day moving average line today, for the second time in four days. This second effort, however, clinches the technical bullish cue from Friday. Just as telling is the fact that today's bullish volume is also going to be strong; the masses are starting to pile in. Time to follow that lead, especially considering it's supported by tangible progress from the company itself.
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