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Technology Stocks
GRU: Is Answers.Com ......The next Google
An SI Board Since February 2005
Posts SubjectMarks Bans Symbol
29 7 0 ANSW
Emcee:  M0NEYMADE Type:  Moderated
(ANSW) "Is the Next Google?
By W.D. Crotty
February 4, 2005

Could the next Google (Nasdaq: GOOG) be found in Jerusalem, Israel?

When GuruNet (AMEX: GRU) went public in October, its initial public offering (IPO) generated little excitement. The company sold 2.35 million shares at $5.00 each and closed that day nine cents higher. Two trading days later, the stock hit $4.40 -- talk about unloved!

But, consider this. Are you tired of search products that return a long list of websites that may or may not be related to the query term? GuruNet's search engine avoids the typical hyperlink list with narrative responses -- it even provides tabs for other related information that comes formatted as charts, graphs, and maps.

Users must download the company's software and be using a Microsoft (Nasdaq: MSFT) Windows or Apple (Nasdaq: AAPL) OS/X operating system. When working in an email, spreadsheet, word processor, database, or other application, a user can "alt-click" on a word or phrase, and the company's "answer engine" will access the company's online library and display the relevant information.

Investor interest in the stock started to build after the announcement in January that the company had released its product. GuruNet would now generate its revenue from ads placed alongside its topic entries rather than from the subscription fees it had charged for its premium content.

Investor response has sent the stock off on a Taser-like (Nasdaq: TASR) rise. Today, the stock is up 25% to a 52-week high -- without any company news.

Investors would be wise to go back to the IPO prospectus and read through the risks this company faces. One significant one is that of IPO funding. While it is adequate for the next 12 months, the company is going to be producing operating losses. More funding, and probably share dilution, is coming. Oh, and the company has more debt than cash. Yikes.

The company's content is licensed from year to year. That's hardly comforting when it is the content, as well as the search, that counts.

Why is GuruNet soaring? Investors may be looking at Google's $55.6 billion market capitalization and thinking that GuruNet's Lilliputian $93 million capitalization leaves a lot of room for growth. Maybe, but has just been released, and its future, and the company's too, are far from certain.

GuruNet is a speculation. Investors interested in the stock should first download and determine themselves if the product is something that could win mass appeal -- and then make an investment decision.
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29I agree that they are likely to be acquired. Even if they are not acquired, I tMikeS97707-5/9/2007
28Thanks someone there answered me yesterday. I'm not sure how soon there reveSIer formerly known as Joe B.-5/9/2007
27Thanks someone there answered me yesterday.SIer formerly known as Joe B.-5/9/2007
26The price drop was because guidance wasn't as good as people expected. HoweMikeS97707-5/9/2007
25What's going on today with the price drop? Anybody listen to the conferenceSIer formerly known as Joe B.-5/8/2007
24There is an active board for ANSW over on InvestorsHub. It is located here: inMikeS97707-3/23/2007
23Murdock is reported to be considering a search engine---------see partial releasMJ-8/12/2005
22GRU: Recognized by Forbes and PC Magazine Monday April 18, 9:35 am EM0NEYMADE-4/18/2005
21When I first saw Google sending loads of traffic to, I knew it couldMark Fleming-4/10/2005
20With Google's outside counsel involved with this company this might interestBrinks-4/8/2005
19Wakeup,,,$22 a high of $23.50 EOMM0NEYMADE-4/6/2005 just dissed GRU by: hatemenow4 03/21/05 03:41 pm Msg: 23867 of 238Buyerchoice-3/21/2005
17GRU getting molested here. We say go lower!! same for BOOM!Brasco One-3/16/2005
16i notice he also likes my TCOWs :) LazarusLazarus-3/13/2005
15Brasco,,,,Will INCX come back??? $17-$20 --TIAM0NEYMADE-3/12/2005
14Mark Cuban likes GRU: blogmaverick.comM0NEYMADE-3/12/2005
13Unlike Search Engines, Answers.Com Responds With Data, Not Links [NYT] January 2Sam Citron-3/11/2005
12If in Rome, I will do like the Romans do and drink at Excelsior. Trouble is, I Jane4IceCream-3/7/2005
11Dear Jane, I hope you enjoyed our conversation. You should not loose your tempeYaacov-3/7/2005
10LOL! JaneJane4IceCream-3/7/2005
9Interchange Acquires Domain Name, Announces Plans for Destination SearcBrasco One-3/7/2005
8staright from hypsters mouth... To my friends on the G&V, INCX is the one tBrasco One-3/4/2005
7INCX at $11. not too long ago it was trading at $31. Si's resident hypster Brasco One-3/4/2005
6INCX now $10s..ouch for all the bagholders.Brasco One-3/3/2005
5INCX melting further today..cant even stay over $10.. all the hyspters behind inBrasco One-3/3/2005
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