ACOM

This article appeared on Seeking Alpha. Please view disclosures: https://seekingalpha.com/article/293902-why-ancestry-com-has-staying-power-a-double-in-the-making Ancestry.com (ACOM) has taken its shares of lumps following its second-quarter earnings release, which revealed a digestion of the massive growth in subscribers experienced in the first quarter. According to the most recent tally, roughly 25% of the free float of Ancestry.com’s shares are short — an absolutely amazing level given the profitability and growth of the firm. As we outlined in our second-quarter earnings note, we were pleased with the results and maintain that the firm is significantly undervalued: Subscriber growth of 28% from the same period a year ago fueled a 36% increase in the company’s top line during the quarter. We were particularly impressed with the level of average … Read more

Best idea, Ancestry.com (ACOM) reported solid second-quarter results Thursday that showed nice subscriber growth and impressive EBITDA margins. The firm raised its outlook for revenue and adjusted EBITDA in 2011, but held the line with its previous subscriber guidance, a move we think is conservative given the huge influx of subscribers in its first quarter. We think the firm has tremendous upside and are retaining our current position in our Best Ideas portfolio.   Subscriber growth of 28% from the same period a year ago fueled a 36% increase in the company’s top line during the quarter. We were particularly impressed with the level of average monthly revenue per subscriber, which continues to move steadily upward. Churn did increase a … Read more

This article originally appeared on Seeking Alpha. Please view disclosures: https://seekingalpha.com/article/272898-despite-high-short-interest-ancestry-com-is-ripe-for-impressive-growth  After listening to Ancestry.com’s (ACOM) presentation and question-and-answer session at the Bank of America Merrill Lynch Technology conference Wednesday, we are reiterating my $70 fair value estimate on the firm’s shares. The call also reminded us of one of Peter Lynch’s investing principles. During most of the questions, it became readily apparent that the basic assumption is that Wall Street (defined by the moderator as those that attended the conference, or have posed questions to this particular sell-side analyst in the past) doesn’t necessarily mesh well with Ancestry.com’s demographic market and users. To some extent (not all), this may be why the firm is one of the most heavily shorted stocks on the … Read more