Stockmarkets can be cruel and irrational. Here is a company that is profitable, has lots of cash on its books and has grow at near triple rate. Yet it’s shares were back in IPO territory yesterday, although they’re recovering a little bit today. If you missed it the first time around, now is a second chance. You’ll get much more this time around, for almost the same price.

Look at the two year graph:

We’re almost two years further ahead since the IPO at $6. The company has been transformed. It’s MUCH bigger, healthier, more profitable. It is now trading at just over one-time sales, and that for a company which:

• Almost debt-free (90% of its senior convertible notes were converted per September first
• The company has $8.6M in cash and cash equivalents
• Gross margins were 58% the last quarter
• The company expects almost $2 per share in EBITDA this year

The company also has taken over and successfully integrated (as is witnessed by margin development) four acquisitions and started three promising B2B websites. In short, we think irrational pessimism has set in here. Actually there is little doubt in our minds about that.