“Angie’s List, Inc. (ANGI Nasdaq) operates a customer-driven website where members can research, hire, rate, and review local professionals and services, including home remodeling, plumbing, roof repair, health care and automobile repair. The company went public in late 2011, but has only recently begun to create a considerable buzz after posting several quarters of solid revenue growth. Specifically, last week Angie’s List announced that first-quarter sales soared 68% year over year. During the past year, the company has averaged revenue growth of 71%. Angie’s List also forecast second-quarter earnings of $58.5 million to $59.5 million, well above the consensus estimate. … The company added 275,000 subscribers last quarter, with membership standing at approximately 1.95 million. Angie’s List is also cutting subscriber acquisition costs, spending 12% less on acquisitions in the first quarter. It’s a good story with a unique offering. Technical Analysis: … Bolstered by stronger-than-expected fourth-quarter and first-quarter earnings reports, ANGI has soared more than 100% since the start of the year. Given the recent post-earnings pop, we recommend taking bites on pullbacks. Suggested Buy Range 22.5-24. (Cabot’s buy range is valid for two weeks.) Suggested Stop-Loss 20-21.”
Michael Cintolo, Cabot Top Ten Trader, www.cabot.net, 978-745-5532, 4/29/13
