Angie's Short List

Angie's List, Inc. (ANGI) has not added any value to its user experience since going public and it boasts a market cap of $670 million. Angie's Gross margins might look fantastic at 80%-plus, but with no explanation as to what really constitutes cost of sales. Angie's List has not posted a profit since founded in 1995 and last year lost $49 million. A recent law suit filled alleges breach of contract, deception and unjust enrichment. It seeks an unspecified award of three-times the financial damages incurred under a count alleging deception for allegedly mis-applying credit and debit cards to collect the unauthorized bundled membership fees. I do not think this is a very good business model and that fee based membership for this type of business will be very tough to ever make profitable.

Google Trends comparison shows that ANGI is also losing major ground to YELP between 2010 and 2012.

seekingalpha.com/art...t-more-trouble-ahead



Stock pattern loose flag or pennant shaping out.

Flag
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Pennant
thepatternsite.com/pennants.html