Stock Alert for FriendFinder Networks Inc. (FFN)
  • Stock Alert for FriendFinder Networks Inc. (FFN)
  • Stock Alert for Ceragon Networks Ltd. (CRNT)
  • " />

    Stock Report for FriendFinder Networks Inc. (FFN)

    FriendFinder Networks Inc. (FFN) is an Internet-based social networking and technology company operating several of the most heavily visited Web sites in the world, including AdultFriendFinder.com, Amigos.com, AsiaFriendFinder.com, Cams.com, FriendFinder.com, BigChurch.com and SeniorFriendFinder.com, and social commerce company operating JigoCity Web sites in more than five countries, providing members high quality, daily deals that are relevant to their individual lifestyles. In addtion, FFN produces and distributes original pictorial and video content and engages in brand licensing.

    Share Statistics (21-Feb-12)   FY

    2009

    FY

    2010

    %

    Chg

    Q3

    2010

    Q3

    2011

    %

    Chg

    Symbol FFN Revenue, $Mn 327.69 346.00 5.6% 86.66 82.74 -4.5%
    Current price $2.35 Gross marg. 72.0% 68.1% -5.4% 68.9% 66.3% -3.8%
    52wk Range: $ Oper. margin 18.6% 17.8%
    Avg Vol (3m):   Net margin -12.6% -12.5% -0.8% -5.8% -6.5% 12.1%
    Market Cap.                
    Shares Outstanding   EPS, $ -1.27 -1.32 3.9% -0.46 -0.17 -63.0%

    Source: Reuters.com, SEC Filings.

    Investment Highlights

    FriendFinder Networks Inc. (FFN) on Tuesday inched up 0.86 % to close the session at $2.35, stretching gains into a fourth day.  Over 1.62 million shares traded hands during the session, versus the 10-day average volume of over 1.65 million.  FFN is currently above its 50-day moving average of $1.23 and above its 200-day moving average of $1.81.

    Shares of the Boca Raton, Fla.-based Internet and technology company have risen 15.2% in the last five days and 190.1% in the last month; though the stock dropped 17.5% in the last six months to date.

    FFN shares gained on Tuesday as investors welcomed a research study that affirms the rapid growth of the online dating industry and forecasts the market to surpass $2.5 billion by 2015.

    According to the research, which was conducted by Florida-based market researcher Marketdata Enterprises, dating Web site growth is expected to be 7.2% annually with key drivers that include geographic and mobile application expansion. Marketdata Enterprise has tracked the dating service market since 1998.

    Marc Bell, president and CEO of FFN, commented in the release: “The Marketdata study confirms what we have known for some time – online dating presents a tremendous opportunity for FriendFinder Networks.  Already considered one of the most significant participants in online dating, with properties that include FriendFinder.com, PerfectMatch.com, AsiaFriendFinder.com, SeniorFriendFinder.com, AdultFriendFinder.com, Amigos.com and BigChurch.com, FriendFinder Networks operates more than 40,000 sites, catering to over 528 million registrants.  This robust platform provides us with tremendous coverage and exposure to a strong and growing market.”

    Bell added that while all of FFN’s sites benefit from a shared technological and operational platform, the Company’s focused approach on multiple demographics provides users with an intimate experience focused on the interests, beliefs, and values that are most important to them.  This individualistic approach has allowed the Company to continue to penetrate different areas of the market and establish ourselves as the leader in social networking and dating Web sites.

    Also, the explosion of smartphone technology has made mobile applications a key component of online dating, said the Company.  The All FriendFinder App, available on iPhone, Android and other smartphones offers users of any of FFN’s sites a way to keep in touch on the go and manage their dating life from the palm of their hand.

    FFN is confident it is well positioned to address specific areas driving growth.

    Source:

    http://finance.yahoo.com/news/FriendFinder-Networks-prnews-659319592.html?x=0

    Financial Summary

    FFN’s revenue for the third quarter of 2011 came in at $82.7 million. The Company said the result was impacted by a decrease in traffic and a decline in new subscribers and renewal orders primarily in European markets. Social networking revenue was offset by an increase in live interactive video.

    FFN realized income from operations of $14.7 million for the quarter, impacted by a lower gross margin and an increase in product development, selling and marketing, and general and administrative spending. The increase in these expenses was primarily due to an increase in headcount across the Company as it develops its business units and general and administrative expenses related to stock compensation expense.

    FFN posted a net loss of $5.4 million, or $0.18 per share, for the quarter.  Adjusted EBITDA came in at $20.3 million.

    As of September 30, 2011, the Company had cash and cash equivalents of $28.2 million, compared to $42.0 million at December 31, 2010. As of November 14, 2011, the Company had outstanding principal debt of $491.8 million. On November 4, 2011, the Company paid down $7.3 million of New First Lien Notes and Cash Pay Second Lien Notes. Free Cash Flow per Share was $0.36 and $1.99 for the three and nine months ended September 30, 2011, respectively.

    Source:

    http://www.ffn.com/press/friendfinder-networks-inc-reports-financial-results-for-third-quarter-2011/

    Financial Strength (21-Feb-12)

    Company

    Industry

    Sector

    S&P 500

    Quick Ratio (MRQ) 0.38 0.58 1.04 0.58
    Current Ratio (MRQ) 0.39 2.91 2.70 0.93
    LT Debt to Equity (MRQ) 10.45 12.87 170.90
    Total Debt to Equity (MRQ) 18.17 23.36 228.35
    Interest Coverage (TTM) 1.22 1.59 26.29

    Source: Reuters.com, SEC Filings.

    Technical Analysis

     

    Source: http://stockcharts.com

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Feb21-2012 symbol Share, $ $ Mn 2011 2012 2011 2012
    Groupon Inc. GRPN 19.84 10.49B 68.41 23.90 4.44 3.50
    Quepasa Corp. QPSA 4.27 143.76M 71.17 13.00 2.99
    Linkedin Corp. LNKD 90.87 8.95B 146.56 83.37 10.28 6.99
    Renren Inc. RENN 5.36 2.10B n/a n/a 17.80 12.00
    Internet Software & Services Median       27.03 n/a 2.76 n/a
    FriendFinder Networks Inc. FFN 2.35 73.36M 1.33 1.28 0.22 0.22

    Source: Thomson Financial

    DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority.  We are neither licensed nor qualified to provide investment advice.

    The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice.  The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities.  We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

    Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company.  An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report.  Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

    Any individual who chooses to invest in any securities should do so with caution.  Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

    Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934.  Subscribers are cautioned not to place undue reliance upon these forward looking statements.  These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated.  Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC.  You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

    We are committed to providing factual information on the companies that are profiled.  However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions.  We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so.  Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

    To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

    We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org

    Leave a Reply

    Your email address will not be published. Required fields are marked *