Barron's Likes The Long-Term Outlook For Monster Worldwide (MWW)

September 21, 2009 12:05 PM EDT

This weekend Barron's published a bullish piece on Monster Worldwide (NYSE: MWW). Barron's says Monster has been spending heavily to improve its business and the paper thinks it's now positioned to reap the benefits of those investments.

Over the past three years, Monster has spent more than $200 million redesigning its Website for job seekers, expanding globally with the purchase of ChinaHR.com and buying Trovix. In addition to making investments in the company, it has also trimmed costs by 25%, or $164 million in the first half of the year.

Monster's shares have nearly tripled since their March low to approximately $17.50, which is where it traded a year ago. Barron's did say that the stock's hot performance makes it a risky bet in the short-term, but a pullback of 10% or more would offer a nice buying opportunity for long-term investors.

Barron's noted that Monster will benefit from its increased presence abroad, where it already gets about 45% of its annual revenue of $1.3 billion, and which was growing at a near 18% annually last year before the global markets fell apart.

Barron's thinks that Monster can increase its market share of the online job market because it recently reorganized its sales force, and its rolling out a new employer search tool.

Finally, Barron's likes Monster's balance sheet, which has $236 million, or nearly $2 a share in cash and almost no long-term debt. The paper said a pullback in the stock would offer a great buying opportunity for investors who aren't afraid to leave their money in the stock for several years.

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