Crowdgather Appeals to all Business Sizes - Analyst Blog

Ken Nagy, CFA

Crowdgather Appeals to all Business Sizes

CrowdGather, Inc. (CRWG) is an Internet company that specializes in the development and hosting of forum based Web sites. The firm endeavors to monetize a network of online forums and message boards. Forums remain a much undervalued part of the internet pie with $4.8 billion and CowdGather is the only public company dedicated to monetizing this area.
CPM is an internet advertising term that stands for cost per thousand ad views. While the major internet sites such as ESPN, can be as much as $20 CPM forums can be as little as $0.30 to $0.60 this opens the firm up to advertising revenue from both small and large businesses.

Outperformance in Any Market
According to the Kauffman Index of Entrepreneurial Activity entrepreneurs have remained a strength of the U.S. economy amid one of the worst recessions on record. More entrepreneurs launched new businesses in 2009 than at any other time in the past 14 years. This makes sense from a logical standpoint as well. In the simplest of terms when things get rough entrepreneurs tend to take matters in to their own hands. Small businesses tend to lead economic growth, whereas large firms tend to follow it. Among small businesses, very small businesses (VSB), which the California Association for Micro Enterprise Opportunity (CAMEO) defines as 5 or less employees, come into being to meet immediate and local needs or to develop new or emerging markets by using innovation and technology. They tend to make markets. Large businesses tend to shy away from small or unestablished markets. They most frequently do not make investments until they are fairly certain that markets exist, conducting long studies and spending heavily to break into a market that already has been “pioneered” by smaller and bolder ventures.

For a free copy of the full research report, please email scr@zacks.com with CRWG as the subject.