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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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New Media Spark - Sale of Pricerunner

September 2004

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • NMS
The shares jumped after New Media announced the sale of Pricerunner,its online comparison shopping site, to Nasdaq-listed on-line media group, Valueclick, for a maximum US$36m. Spark's 40.6% interest entitles it to an initial US$11.9m, plus a further maximum US$2.5m, if it achieves its earn-out target.   Given that Pricerunner's book value to Spark was £1.1m, the sale should trigger a one-off gain of at least £5m when its final results are released.  Pricerunner, whichachieved sales growth of 80% last year, as well as enjoying net marginsin excess of 20%, represents Spark's first significant exit from an early stage investment. At current levels the shares are hovering around Spark's ...

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