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Inuvo Isn't The Screaming Buy It Appears

After reading much discussion in various corners of the internet about Inuvo's (INUV) fourth quarter results, I feel the need to provide an update to my previous thesis as I believe many people are analyzing the quarter wrong.

First the good: The fiscal fourth quarter was certainly good in and of itself. Revenue jumped 36% to $15.5 million. Net income swung from a loss of $253 million or $0.01 per share to positive $645 million or $0.03 per share.

Sequentially it was an improvement of 19% on sales and 50% on EPS over the $0.02 the prior quarter. Investors are excited and speculating what sequential improvement might be in store for the first quarter. At $0.03 it's an annualized P/E of less than 12 based on the $1.42 share price at the time of this writing. What's not to love?

The problem: INUV is a seasonal business. The first… Read More …