Newsletter Watch: Salary.com

Bill Martin is well known as the original founder of the Raging Bull, an early leader among financial online communities. Now, in addition to being a director for BankRate.com, he is also the founder of Indie Research, which publishes such sites as BullMarket.com.

His Bull Market Report is a daily investment service focused on identifying what he considers to be "great long-term growth, value, and income generating investments."

As part of a diversified, long-term portfolio Martin will often recommend small-cap stocks, such as one of his latest recommendations, Salary.com, Inc. (Nasdaq: SLRY), with a market cap of $140 million.

"Salary.com will be celebrating the one-year anniversary of its IPO and subsequent listing on the Nasdaq stock exchange,” he says. “It was around this same time that we originally looked at the company, telling investors to steer clear."

Since his first cautious assessment, the shares have ranged between $16.32 per share on the high side to Thursday’s closing price of $8.55.

Now, a year later, he has reexamined the shares. "With the stock price now significantly lower — over 40% lower — and top-line growth still strong, our opinion has changed," he says.

At its core, he notes, Salary.com provides Web-based software suites that help companies manage their employee compensation packages. "As its name suggests, the company helps clients determine employee salary and compensation through a variety of comparable databases, third-party data, and in-house data available from customers," Martin says.

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