Sell Zedge and Lock in 114% Profit in A Month
Zedge (ZDGE)has appreciated a lot faster than I had anticipated. It is up over 100% since we profiled the name last month and is trading above my fair value estimate of $9.80.
The price strength was driven by a recent press release highlighting 158% subscriptions growth as well as a broker upgrade. The subscription growth is indeed excellent, but it’s not anything new (Zedge reported that growth last quarter).
I like the Zedge fundamental story, but the stock price has run ahead of its fundamentals.
If the stock pulls back to below 7.00, we can buy it back, but let’s move to the sidelines for now and take advantage of what the market is giving us.