Mind over Media
10/12/2010 10:56 am EST
James Oberweis, editor of The Oberweis Report, says a maker of software that supports digital advertising is the kind of fast-growing small cap that gives investors good long-term returns.
The past few years have been some of the most volatile periods in stock market history. Few predicted the 2008 crisis or the significant rebound in 2009. While periods like 2008 can be painful, long-term equity returns have still been quite favorable for those who stayed the course.
Over the last 34 years, [since we began publishing a model portfolio,] volatility has actually offered our readers significant opportunity. In our experience, periods of high uncertainty have often afforded disciplined investors the opportunity to buy high growth small caps at exceptionally attractive prices.
The very best years for our model portfolio have typically occurred as the economy emerged from recession, when few are excited about the stock market and appetite for risk is quite low. This was true in 2009, and we experienced similar patterns after the recessions of 1980, 1991, and 2003. Indeed, these years turned out to be the best years ever for our model portfolio, though few would have predicted it at the time.
While yearly results can be volatile, disciplined investors who remain invested in a portfolio of high-growth, small-cap equities using our methodology have historically achieved an exceptional return over long periods of time.
MediaMind Technologies (Nasdaq: MDMD) is a leading global provider of digital advertising campaign- management solutions to advertising agencies and advertisers. The company’s integrated campaign-management platform, MediaMind, helps advertisers and agencies simplify the complexities of managing their advertising budgets across multiple digital media channels and formats, including online, mobile, rich media, in-stream video, display, and search.
MediaMind provides customers with an easy-to-use, end-to-end solution to enhance planning, creation, delivery, measurement, and optimization of digital media advertising campaigns. The company is the only major provider of integrated campaign-management solutions not committed to, or affiliated with, a particular publisher, agency or agency group, or advertising network.
MediaMind believes that this independence allows them to provide their customers with unbiased insight and analysis regarding the implementation and effectiveness of their digital media advertising campaigns.
In the six months ended June 30, 2010, sales increased approximately 36% to $37.2 million, from $27.4 million in the same six-month period of 2009. During the six months ended June 30, 2010, MediaMind reported net income of $3.4 million versus $1.9 million in the same six-month period [the previous year].MediaMind completed its initial public offering on August 10, 2010, selling five million shares at $11.50 per share. (It closed above $13 Monday, and its market capitalization approached $240 million—Editor.)