Angie’s Lost

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Earlier this year, I found out a good friend of mine had a ton of Angie’s List stock (a seriously large amount). I normally refrain from giving advice to anyone one-on-one, even friends, but I urged him to get rid of it. He reminded me of this last night, when he sent me this snippet of one of my emails I sent him last February, (obscenity politely redacted):

I actually have thought Angie’s List was a bullshit company. I wrote a scathing post about them in December. I think they’re going to be a single digit stock, perhaps even before the year is out.

Well, the market hasn’t opened yet, but I’ve marked with an arrow where the bid/ask currently is:

0724-ANGI

The same friend wrote me this morning to shared with me this information from ANGI’s earnings release, which, ummm, kind of explains the problem:

– Marketing cost per paid membership acquisition:  $90
– First Year Renewal Rate:  74%
– Cost of a FULL-YEAR membership:  $6.99