House of Cramer

The House that Cramer built is finally delivering. Not papers....profits.

TheStreet.com (TSCM-NASDAQ) recently turned 10 years old...the grand old dame of financial internet sites. It would appear their monetization strategy is starting to click...although with 20% of the float shorted not everyone is a buyer. Still, the stock is picking up sell-side sponsorship and their sector is hot. Digital media is on internet time once again.

The internet has always made for strange bedfellows...here is TheStreet.com’s take on TheStreet.com’s quarter

Shares of the online provider of financial commentary, analysis, news and ratings recently were trading up 76 cents, or 7.3%, to $11.16.

The company, publisher of this Web site, reported net income of $4 million, a 125% increase over $1.8 million for the year-ago period on net revenue of $14.4 million, a 44% increase from $10 million from 2005. Earnings per share were 14 cents, doubled from 7 cents in the year-earlier period.

Advertising revenue is on fire…

Fourth-quarter advertising revenue reached $4.8 million, a 49% increase over the $3.2 million recorded in the fourth quarter of 2005. Fourth-quarter subscription revenue was $8.8 million, a 36% increase over the $6.5 million recorded in the fourth quarter of 2005 TheStreet.com

The growth, although off a small base, is impressive. We don’t know what Cramer is thinking, but we would guess that he will stick around to lend a hand as he still has plenty of skin in the game.

Will they be more successful peddling hot dogs than the caviar other sites offer up?

That remains to be seen. Management will need to execute on their sweeping initiatives.

But if the stock lifts any higher the bears could get a severe case of indigestion.
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The content contained represent the opinions of 1440 Wall Street. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author. 1440 Wall Street has no positions in any securities mentioned above

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