TheStreet.com (TSCM) hit a seven-year high today at $13.72. It is hard to point to one factor driving the stock. Jim Cramer is as popular as ever, Wall St. probably is looking for a strong third quarter.
But, the reason for the move up in the shares could simply be an acknowledgment that online content has become very valuable. The premium that News Corp (NWS) paid for Dow Jones (DJ) is some indication of that. NBC recently bought cable company Oxygen.
There is increasing speculation about the value of private online content sites. CBS has recently acquired video financial site WallStrip.com. NBC bought news aggregation site Newsvine.
The cycle for TheStreet has been a long one. Like many other internet businesses, it was punished in 2000. The beating lasted a long time, but TSCM had company. Shares in CNET collapsed and really did not come back until 2004.
With a forward P/E of 20, TSCM is not expensive, even at its new high.
Douglas A. McIntyre. McIntyre was a member of the board at TSCM until 2005.