Fort Worth based Browder Capital announces significant position in Rocket Fuel (NASDAQ: FUEL) citing opportunity after recent pull back.
In line with Browder Capital strategy we are announcing a significant position in Rocket Fuel (NASDAQ: FUEL), a leading provider of artificial intelligence and big data solutions for digital advertising. Due to the recent pull back in most technology equities, we have seen a sell off that produced a ~57% decrease in FUEL's stock price from its highs in January 2014. With this decline, we believe Rocket Fuel has become oversold and is currently a strong opportunity.
In fiscal year 2013 Rocket Fuel produced 126% revenue growth, 147% gross profit increase, and becoming adjusted EBITDA positive in its first year after IPO. In addition, had Rocket Fuel not grown their customer base at all in 2013, they would have still seen a 68% increase in revenue. We believe 2014 to be a year of continued growth for this company, with forecasted increases in revenue of 75-81% and adjusted EBITDA growth of 900-1900%. We see this as a conservative forecast due to the increase in TAM forecasts, the launch of their new mobile platform, and their latest partnership with Transunion.
Browder Capital is an investment management company founded on the principle that volatility in the market provides opportunity. With over 16 years of combined investing experience, our company founders have developed and fine-tuned an investment strategy that has proven to effectively capitalize on the short-term inefficiencies of the market. Our highly active long/short equity portfolio management strategy aims to provide clients with capital appreciation through equity and derivative trading driven by proprietary algorithms, expansive market research, and in-depth analysis. This results in an exciting opportunity for investors looking to diversify their portfolio in an actively managed and growth oriented alternative investment vehicle.