| Stock (Symbol) | Stock Price | |
Trulia (TRLA) |
$31 |
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| Data is as of | Expected to Report | Sector |
December 17, 2013 |
Feb 12 – Feb 19 |
Technology |
| Sharek’s Take | ||
 Today I will purchase shares of Trulia (TRLA) for the Growth Portfolio and Aggressive Growth Portfolio. In my opinion, Trulia runs the best real estate website in America, and the company just turned profitable this year. Sales are set to grow from $68 million last year to $143 million this year — and analysts think the company can do $245 million next year. To get such great growth we have to pay 40-something times earnings, but I think this is a top growth stock to own and sometimes you can’t get every stock at a discount. TRLA stock is on a dip now, having corrected from $53 to $30, and we are getting in just as the stock’s turned back up (I hope for good). Note: this data is from 12/17 when the stock was $31, I’m buying TRLA today around 35. |
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| Just One-Year Chart | ||
 Profit growth was great the last 2 qtrs because the company posted losses a year-ago. Same thing with the next 2 qtrs. I feel the Est. LTG of 20% is too low. Revenue is expected to pop 71% next year but analysts think profits will grow only 19%. I see better profitability than that. |
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| Earnings Table | ||
 Profits jumped 427% last qtr, sales grew 57%.Trulia crushed earnings estimates last quarter. 8 cents was the estimate, the company made 49 cents. 2013 estimates jumped, but 2014’s came down. So now profits will be only 19% higher next year as sales increase 71%? I don’t think so. Quarterly estimates look solid for the next three quarters. |
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| Fair Value | ||
 I don’t know if there’s much upside next year if I use an appropriate P/E. I just think this is a stock we need to own, and we are getting it on a price reduction. Upside to 2015 looks great, we need to buy and hope. |
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| Ten-Year Chart | ||
 Trulia dipped after its IPO, then roared higher. I think this is good we are getting in between $30-$35 per share. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
11 of 26 |
Trulia is a franchise I want to own, but even though the stock’s on a dip it’s not selling at a discount to its Fair Value. I feel the stock could rebound quickly, but if it doesn’t I still want to own it for the long-term. This company could post profits that are much better than expected next year. |
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Aggressive Growth Portfolio
9 of 12 |
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