Categories: OLD Media Moves

TheStreet.com shares jump 27%

Eric Savitz of Barron’s reports Tuesday on the 27 percent rise in TheStreet.com stock — 69 cents to $3.21 — due to its earnings release on Monday where it restated earnings for the past year and gave guidance for the fourth quarter. (The stock is now up 28 percent, or 71 cents.)

The rise has led to a $2.5 million increase in the value of co-founder Jim Cramer‘s holdings.

Savitz writes, “One thing that was clear from the filing is that the stock may have become artificially cheap, and as of yesterday’s close was trading below the level of its balance sheet cash. But faster than you can yell Boo-yah! the market has taken care of the problem.

“Give an assist to JMP Securities analyst Sameet Sinha, who today moved to a Market Outperform rating on the stock from Market Perform, and setting a $5 price target. Sinha notes that in addition to $83 million in cash, or about $2.37 a share,  the company has net operating loss carryforwards of $128 million, with a value he calculates at about 73 cents a share. That brings you to $3.10 in assets; the stock closed yesterday at $2.52; as recently as last Thursday the stock closed at $2.22.

“Sinha set a price target on the stock of $5 — in essence, he was calling the stock a potential double. ‘After two quarters of no visibility into their financials as the company was buried under an accounting investigation (now concluded), we believe that there is inherent value in the stock,’ Sinha wrote in a note.”

Read more here.

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