MeetMe is Finally Off to the Races (MEET)

It took several months to get there, but shares of MeetMe Inc. (NYSEMKT:MEET) are finally living up to their potential hinted at back in July. Better still, today's bullish move from MEET isn't just some fortunate volatility. Friday's surge has taken the stock past a key line in the sand, and in so doing, has cleared the deck for more buying ahead.

The chart of MEET tells a bit of a saga. The stock was tanking through June on investor pessimism that it would ever actually turn a profit, but things turned around - sharply - when MeetMe Inc. announced its second quarter revenue was going to roll in far better than first expected. Ever since, the tone and feeling regarding the stock has changed to an optimistic one.

As was noted back in July, the horizontal line at $1.84 is a big line. A horizontal ceiling at $1.95 developed in the meantime. That wasn't a bad thing, necessarily - sometimes a pause can be a good thing in that it gives the bulls some time and room to build up some steam. In the meantime (and to the same end), MeetMe Inc. has made a string of higher lows. It all contributes to the coiling of the spring, as did the way a couple of key moving average lines started to act as support this week, ultimately serving as a springboard for what happened today. Putting it all together, this squeeze-out has been a long-time in the coming, and now that it's here, it should last a while, especially with today's cross above the key 200-day moving average line (green).

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Better still, the company's making tangible revenue and earnings progress to keep some buying pressure on the stock. MeetMe Inc. is expected to drive $48.5 million in revenue next year, up from a projected $38.8 million this year. That should be enough sales growth to drive this year's per-share loss of $0.27 to only a $0.02 per-share loss in 2014. It's still a loss, but the rate of progress says profits are in sight, probably in 2015. That kind of clear future potential is good for MEET now, so we can take all these bullish technical cues at face value.

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