In the Cheap Investor 2.0 newsletters, we don’t make it a habit of recommending stocks nearing $30.

But one of our stocks, recommended at just $7.88, just hit $28.04, and we just reiterated a buy.

That’s a 256% win to date, but I think the stock has 1,000% return potential.

That stock is Digital Turbine (APPS).

In recent weeks, its earnings crushed expectations.

Revenue in the fiscal first quarter jumped 93% to $59 million, crushing the estimates for $48.5 million in sales. Adjusted net income came in at $12.5 million, or $0.13 per share, which was above expectations for nine cents.

"Our fiscal first quarter was a breakout quarter for Digital Turbine", said Bill Stone, CEO.  "Positive momentum trends throughout the business drove better-than-expected results and have the Company well-positioned for continued strong performance going forward. Advertisers are actively allocating spend toward platforms that offer directly measurable results, and our business is a clear beneficiary of this trend, particularly given the higher conversion rates generated by our platform as businesses and consumers everywhere are increasingly engaging with applications and mobile content as part of their daily routines."

Earlier this year, Digital Turbine also entered into a definitive purchase agreement to acquire Mobile Posse, Inc., a mobile content discovery and advertising platform company for an estimated total of $66.0 million.

"We are extremely excited to announce the acquisition of Mobile Posse today," said Bill Stone.  "We believe that this is a great transaction for our partners, advertisers, employees and shareholders. The early returns on our internally-developed Media Hub product showcased exciting potential, thereby encouraging us to profitably accelerate our growth efforts with these types of content offerings, and Mobile Posse has a proven track record of being one of the very best at providing users with richer media content.”

Believing APPS could see $40 a share, near-term, we reiterated a buy.

Again, it’s not often we’ll recommend a stock at this price.  But we’re already in it. And we strongly believe the run is just getting started.

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