3SOF

mama mia. in at 2.78

phew... almost got shook... was getting out at 2.48

Seems to be basing at center B band.

I like their purchase of Copernic and if they work it right they could get back to their highs.

I tried the Copernic desktop search and it is better then google for desktop.. if they can incorporate into their Internet search they can probably find some business

http://tinyurl.com/abn7w

Well it took a couple of days but super move - wish I would have one like this for the contest....

see chart on lower link

Here is what Briefing com says

13:33     MAMA Mamma.com spike attributed to rumor that INSP could make a bid for MAMA (3.47 +1.07) -Update-

   This one doesn't make a whole lot of sense to us, but just passing it along since it moved the stock earlier (MAMA now up 45%).

I believe MEM is a benefactor of mama.  I would watch that one too, to see if it reacts.  Just a tip.  I used to own mem and I know they have interest. Now at 1.02.

GOAM also flying - great day trade

Damn. Shoulda, woulda, coulda... got shaken out for a moderate loss a while back...
g/l to those holding.

now in evci at 1.60 and keeping those shares in my death-grip clutches until something happens.

Mamma.com (formerly Intasys) has all the questions and all the answers for its Internet customers. In 2004, the company sold its Intasys Billing Technologies subsidiary -- which offered billing and customer care systems for utility, e-commerce, and telecom firms -- to focus exclusively on its Internet media operations. Mamma.com provides Internet surfers with a search engine to navigate the Web, and it offers online direct marketing services and technologies. After a stint as a technology incubator, Mamma.com restyled itself through investments in small, Canadian wireless communications and e-commerce companies.

Mamma's revenue increased from 04's revenue along with its total net income.  They have increased their cash position to almost about $24 million with a book value of $2.18 and total cash per share at 1.996.

• Mamma.com Earnings Conference Call for Q4 2005 and Full Year 2005 scheduled for Mon, Mar 13
CCBN (Thu, Mar 2) 

I don't like to play a stock so close to earning's but this would be one to put on you're watch list. Check out chart att.

WHOA !!!!! MAMA LOOKING GOOD ! LET ME HIT THAT ! 

Ohhh...  MAMA your short-term chart is so attractive.... count me in monday morning

Bouncing off DOUBLE BOTTOM

Terliso, you still need to tell me how do you get those historical charts from www.stockscharts.com without being a premium service subscriber. I don't need it, since I have Metastock, but I'm sure many people here would like to know how you do it ...

I'm thinking of making an "in-depth" analysis on MAMA.

Yes, I tried to post it last night @ INTC thread but the 3SOF site went down

Ok...I'll post it later how to do it i'll just have to go to the GYM for a while

1. Introduction

MAMA came up on my automatic technical filter as a short term bullish stock. Since there was some interest on the 3 Stocks on Fire community on the stock I thought I should make some technical and fundamental tests on it. I'm getting back in shape to manage the 3 Stocks on Fire Portfolio.. If you want to receive our free newsletter with updates to this analysis and other unbiased analysis on stocks, please register.

2. Profile

Mamma.com, Inc. (MAMA) provides search technologies for Web and desktop space through its Web sites, mamma.com and copernic.com. Its mamma.com, a metasearch engine for the Internet, enables in finding and gathering relevant required information. The company also provides online marketing solutions to advertisers, providing keyword and graphic ad placement through its Mamma Media Solutions brand. Mamma.com, through its Copernic Desktop Search product, develops search solutions that enable the searching of files, emails, and email attachments stored on a PC hard drive. It operates principally in the United States, Europe, and Canada. The company was incorporated as Quartet Management, Ltd. in 1985 and changed its name to Health Care Products, Inc. in 1987. Later, it changed its name to Celltech Media, Inc. in 1994; to Smartel Communications Corporation in 1995; to Intasys Corporation in 1996; and then to Mamma.com, Inc. in 2004. Mamma.com is based in Montreal, Canada.

3. Technical Analysis
3.1. All History Chart



This isn't a good looking long term chart for MAMA. Don't you think MAMA was ever at $350, and more important, don't think the company was worth $350/$2.28 = 153 times more in 1993 than now. That reasoning is incorrect, because most probably MAMA's capital was divided in less shares back then than it is now. We'll get to that in a moment.

3.2. Medium Term Chart



When a stock is down a lot you need to use semi-log scale on your charts. This medium term MAMA chart shows the stock is still in a downtrend. The descending trendline is coming around $3. Note as the 200 day SMA (blue line) still has a negative slope.

3.3. Short Term Chart



The short term chart looks a lot more compelling, with an ascending triangle formation. The stock needs to close above $2.31 to make a clear technical buy signal.

4. Fundamental Analysis
4.1. Number of Shares Outstanding



Every single year folks, every single year MAMA increased the number of shares outstanding. Going back to what we were discussing in the beginning of this article, in December 1994 MAMA share price was $30 and the number of shares outstanding was 96,000, so the market cap was $2.88 M. Now the stock closed at $2.28, it has 14,340,000 shares, so the market cap is $32.69 M. So, the share price is 92% lower, yet the company's value is 1000% higher.

This is what dilution makes to investors. Do you think MAMA will stop diluting shareholder value in the short term? If it doesn't, the stock will go down even with improving fundamentals.

By the way, let's make some more fundamental tests.

4.2. Liquidity



I don't know how they got all that cash in 2004, but they're burning it at a fast clip. When they run out of cash, guess what they will do? Sell shares to get some more cash to get going with this money losing company for some more time.

Anyway, I would be glad to know what happened in 2004 for them to have $27.5 M as cash and cash equivalents in the balance sheet. Anyone knows? Thanks.

4.3. Revenues



Revenues are shrinking over the last two years. The expectation for full year 2006 is $8.4 M, so MAMA's revenue multiple is $32.69 M/$8.4 M = 3.89. The industry average is 1.44, so MAMA looks expensive using exclusively this criteria. 

4.4. Profits



In 12 years of history as a public company, MAMA had 11 losing years and just one small profit in 2004. It will lose almost $6 M this year. If there was no stock market, MAMA would be out of business long ago. With the $8.4 M in revenues they'll probably have in 2006, they would need to profit $2.18 M (this is a 26% net profit margin) to justify the current valuation. Instead MAMA will probably lose about $6 M.

5. General Overview

There's an informative article on Motley Fool about MAMA, which you can read here: Fool's on MAMA. The article explains why the company had so much money in 2004 and why it is running out now.

The latest frenzy around MAMA comes from this: "Mamma's Copernic desktop search feature was incorporated into Time Warner's new OpenRide software platform for AOL."

I don't think this will change the company's future or financials. More, I bet MAMA's management is using the current rally to do what it always does when it has a chance, dilute shareholder value by selling shares in the open market.

I don't rule out a rally to $3 on crazy speculative buying, but the risk on a play like this is very high, the stock can fall 50% or more from current levels in a month or two (actually, it was 50% below just a month ago).

6. Trading Plan

My trading plan on MAMA is to stay out of it.

I'll be analysing stocks all month long in November, as I prepare to start co-managing the 3 Stocks on Fire Portfolio. If you want to keep up and receive analysis on your mail box, please register.