Is ANSW a good investment

Answer 1

Any answer to this question is strictly opinion. Investing in a company entails various risk factors so be sure to do your research. As a general beginner's rule, make sure the company is profitable (or is expected to be soon) and that the company has enough cash to survive for at least a year or more. Make sure the company is not taking on a heavy debt level. Also analyze what competitors the company has and the company's growth strategy. If you are a value investor, you may want to look at asset value (book value), or more specifically, price-to-book value.

For ANSW, the company is recently profitable, has approximately $20 million in cash ($2 of cash per share) and nearly no debt. Answer's main competitor is Yahoo Answers, which ANSW has been taking share away from. ANSW plans to repeat the wiki-based question and answer approach in four different (European) languages this year as a growth strategy. ANSW has, approximately, a price-to-book value of 4, which is high and does not make the stock a value on metrics alone. NOTE: all of these measures will change, of course - go to a financial web site such as MSN Money, Yahoo Finance, or Google Finance and type in 'ANSW' for up-to-date research.