Millennial Media Could Be Zipping Higher Soon
Back in August of last year, Stone Fox Capital wrote about the continuous decline of Zipcar's stock. The stock had traded down to $6 in a steady and unrelenting decline since going public around $30 back in 2011. The stock had become so punished that it wasn't long before Avis Budget Group (CAR) came knocking with a $12.25 per share offer in cash that gave bottom feeder investors huge gains.
The latest action in Millennial Media (MM) is starting to replicate the action of Zipcar. First and foremost, Millennial Media traded at the highs out of the gate and followed the path of Zipcar with non-stop declines. It's debatable which stock had the worst chart. Second, the investment concepts remained intact despite the precipitous declines. Investors feared higher competition and delayed profits in pushing the stocks to incredible lows, yet the thesis of car sharing and mobile advertising both remain strong.
Read the full article at Seeking Alpha.
Disclosure: Long MM. Please review the disclaimer page for more details.