Is there any value left in ValueClick?

ValueClick, Inc. (Public, NASDAQ:VCLK) is one of those stocks that I'm tired of hearing about, everyone is, and after they let the Street down, down it goes 10%. Turns out their sales will be lower than expected for both the third quarter and the full fiscal year due to weakness in its online advertising lead generation business. Boo-Hoo ValueClick.

Now that shares are down a few bucks, it's got this StockMaster interested. For the rest of 2007, ValueClick expects sales of between $635 million and $640 million, down from earlier guidance of $645 million to $660 million. Analysts were expecting $650 million and in all honesty, that's not the end of the world.

Let's face it, no one in their right mind would every pay over $30 a share for this company, you'd be crazy.  ValueClick is an online marketing services company making money of people clicking on this and clicking on that.  Think you could convince your parents to invest in them, as Whitney says, "Hell to the No."

But now that shares have come to below $25, I think there is room to fall even further thanks to negative Nancy's and analysts bashing the stock for the next few weeks.  Will they be bought out now and what's the latest buyout rumor?  Buyout Rumors, shmmy-out rumors -- who cares, these clowns are still cashing in on online advertising.

Mark Mahaney from Citi Investment Research downgraded the company to "Hold" from "Buy," back on Oct. 11th but raised his price target to $30 from $25.  ValueClick's stock has risen time and time again in the past few months due in part to speculation the company would be acquired (Mahaney said in a client note). While he said he believes the company is a potential buyout candidate, he said he sees no evidence of a deal near-term.  Nobody does, but yet Mahaney raised his price target to $30 "to capture ValueClick's takeout potential."

 

Fellow Masters, now that ValueClick has taken a body blow, let Wall Street give it the ol' 1-2 and knock the stock down even further saying they are overvalued and watch the downgrades start to come in.

Wait for the stock to drop more if you are thinking about buying shares and if you just lost a ton of money in the past few days thanks to ValueClick, hang in there and get back in the ring.  Eye of the Tiger man, eye of the tiger.

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Article by Frank Lara Jr.

Contributor at TheStockMasters.com

Disclaimer: The Author does not hold any positions or shares in the securities mentioned in this publication nor does he stuff his shorts.

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