Monster's Monstrous Appetite for Cash

摘要

Whoever thinks hope springs eternal never was stuck in a dead-end job. That's why Monster.com's shrewd ads and slogans―"Never settle" and "Today's the day"―have proved so infectious. Nearly 47,000 souls each day post resumes at Monster, many in search of fresh hope. For this, they pay nothing. Investors in Monster Worldwide, parent of the No. 1 online employment service, should be so lucky. Not that they are without hope. One glance at Monster's stock chart―it nearly touched 30 in April from a low near 10 last year―will show you the magnitude of their current aspirations. The trouble is the price they have been paying. At 26 a share, the stock is trading at 47 times this year's expected earnings, all in the hope that Monster someday will wind up as one of the great Internet businesses―even as cash keeps going out the door faster than it comes in (table).