United Online, a dial up internet access provider has a huge sleeper potential in the classmates.com which is the other social networking site that is growing rapidly. It's because it caters to students and it may begin to rival myspace.com in popularity. Additionally, it carries Juno.com and Netzero.com dialup and broad band ISP's. The growth is atrocious but is slated to be improving. Additionally, this stock yield 5.6% dividend and the chart is very bullish. It is little known currently but upside is strong.
The financials are not as stellar as earnings and revenue growth for the quarter was 2.8% (for revenue) and 2.0% (for earnings). ROE is above 18% which is just okay. I think this is a rebound play and that further growth can be made due to the classmates.com site. Additionally, it may become a take over targeted by larger groups such as Yahoo or MSN. Short interest is high at above 9%.
The chart has broken out from a double bottom base and now has based in a tight formation.
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