BWS Financial Drops Coverage of RetailMeNot (SALE) as Thesis Not Valid

BWS Financial dropped coverage of RetailMeNot (NASDAQ: SALE) following the company's latest results, saying the thesis is not valid.

Hamed Khorsand commented, "The Company is not generating the revenue growth we were forecasting for mobile. The rate per transaction has declined, more importantly the rate per mobile transaction. These declines coupled with management commentary of still trying to workout the issues for search engine optimization leads us to reassess the investment story. New content strategy has its own risks and could deviate focus away from mobile couponing, which was the reason we thought SALE’s stock would advance. We have decided to drop coverage as the only part of our investment thesis that still holds water is consumer movement to digital couponing. However, without better conversion rates we do not believe investors would be willing to assign a market appropriate value to the stock. We are chalking this one up as a loss and moving on."

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