Sunday, January 9, 2011

The Next Green Mountain Coffee: Snap Interactive?

Once in a blue moon a penny stock escapes from hell and transforms into a real company trading in a reputable exchange. Green Mountain Coffee (GMCR) was the most recent success story I can think of. The company was in the right place at the right time; it was in a sector that was in bull market mode, from 2007 to 2010.

Here's Snap Interactive (STVI) below:

The stock was trading at $.20 two weeks ago and closed at $2.77 on Friday.  Snap Interactive is a social media dating application that is growing up very fast, at a clip of 50,000 (mostly free) signups per day.  The company has 17 employees.  Revenue the last 12- months was at about $6 million.

The appeal of the app may be this:

"People who meet on can become Facebook friends and learn about each other before they ever agree to an actual date, he said. They typically can see another person’s Facebook posts and photos or videos of them and their friends."

Dating sites are hot, and now they're moving into a new battlefield - dating apps.  In terms of download numbers, Snap Interactive is currently growing twice as fast as .

My feel on this is... STVI goes higher.  The stock is currently trading at $95 million market capitalization, which isn't outrageously expensive.

Smartphone/mobile computing/app stocks are in a bull market.  Social media (Facebook, Twitter, etc) is hot.  So STVI is the penny stock to watch, though I myself wouldn't put much money into this play.


  1. Sounds good. Your points are well taken, but I wonder why wouldn't you put money in this play yourself?

  2. Part of money management is not putting too much money into highly speculative plays. Now if we're talking about KO or PEP, I'll be the first to say "all in baby!"