CNBC Stock Blog
- Mulling Buffett's Stock Advice? Get in With REITs: Fund Managers
- So Now You Can’t Give Microsoft Away?
- Groupon Needs More Disclosure: Analyst
- China’s Steelmakers Set for Turnaround: Analyst
- Bulls Bet Silicon Motion Will Bounce
- Tobacco Stocks a Hot Dividend Play: Analyst
- Forget the Earnings, Disney’s Issue Is the Multiple: Analyst
- Drug Stocks Do Well in ‘Gloom and Doom’ Market: Analyst
ABOUT THE CNBC STOCK BLOG
RSS FEED
CNBC EXPLAINS
Web Stocks: Search For 'Net' Profits
Text Size 
Darren Chervitz of Jacob Asset Management has found some promising investment ideas -- right here on the Internet.
His four-star Jacob Internet Fund is up an average of 18.2 percent per year over the last five years.
Chervitz expects consumer spending to continue to be a drag, offset by international exposure and the weak dollar. He particularly likes small-cap tech stocks with beaten-down valuations, stocks of companies that appear to be likely targets for acquisition.
Recommendations:
(See below for CNBC.com-exclusive pick)
He likes TheStreet.com [TSCM
Loading...
()
], suggesting that the online market site could be a candidate for acquisition by a large media company looking for an Internet presence.
He also recommends Digital River [DRIV
Loading...
()
], which helps companies move their business online. Shares were hurt when the company's largest client, Symantec, renegotiated its contract, but Chervitz expects the effects will have passed by the end of the year.
Web Extra:
Chervitz also offered a bonus selection for CNBC.com -- not revealed on TV.
He likes Shutterfly [SFLY
Loading...
()
], the leading online photo service. The company does a brisk business in personalized products like scrapbooks, beverage mugs, and calendars. It's expected to fulfill more than eight million orders this year. He also notes there has been some insider buying by management in the last week.
Disclosure:
Chervitz owns TheStreet.com and Digital River through his fund.
Data is a real-time snapshot *Data is delayed at least 15 minutes
