Constant Contact’s Potential Breakout

Zachary ScheidtZachary Scheidt submits:

Constant Contact Inc. (<a href=CTCT)” hspace=”6″ vspace=”6″ width=”200″ height=”111″ />Equity markets continue to rally as economic news appears sanguine and professional managers add risk. For most professional money managers, there’s nothing worse than under performing their benchmarks, so as the market climbs higher it is becoming more difficult for these institutional investors to resist buying attractive growth stocks. While I still expect the market to turn lower due to economic weakness, Constant Contact Inc. (CTCT) could at least temporarily benefit from the willingness of institutions to increase their risk exposure.

Constant Contact is primarily an email marketing firm which allows small businesses to build a contact list of prospective clients, and send regular emails to this list in order to generate sales. The platform is attractive not only to small businesses (who may not have the technical resources to design their own email marketing programs) but is also helpful for non-profit organizations soliciting donations or simply distributing information to interested parties. With an attractive entry price of just $15 per month, the service is accessible to almost any venture and could easily pay for itself with a minimal level of converted sales.


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