Of course Oversee.net has a lot more going than just being a large domain name portfolio holder.

They own a top 10 domain name registrar which is alone is quite valuable and saleable and DomainSponsor.com which I believe is largest parking company using Google’s feed.

They also own their own auction platform which appears to be very profitable.

Also, within any company there are a million reasons insiders sell that speak nothing toward the company’s health. Founders included. Yes, there are telltale signs to the patterns of insider buying and selling, I don’t see any particular foreboding here, other than that nobody has put out an offer yet at a low enough price to bring out a buyer.

That said, I still maintain there are far better places to put your capital than into an opaque illiquid company that may or may not someday go public.

I don’t agree with that

I’ve been watching shares of Facebook selling by insiders for over a year and the price has gone from $30 to $70 with shares trading at numbers in between.

If you an insider and want to liquidates a portion of your holdings I don’t think that’s an indication of trouble at the company.

My point is as the asking price continues to fall, it drags down the entire company’s valuation

Were a transaction to occur, it would give a baseline “market cap”, but against that, we have absolutely no way of knowing whether the buyer got a deal or the seller hit paydirt. Which is a big reason why these companies are so illiquid. I think an investor would have to have rocks in his head to buy any shares in a company where he couldn’t get a look at the financials and filings.

There are actually two prices to an equity share, the bid AND the ask. The difference is called the spread. When valuing a company the bid is not as important as the ask b/c although there may not be any buyers at a given price if the owners aren’t willing to sell it’s a good sign. However, when the owners *are* willing to sell at a low asking price and *there are no takers* that’s a very bad sign. In actuality it means that the true value of the company is LOWER than the ask *at this moment in time*. While it’s true that the quotes you see scroll across a ticker and plotted on the charts are the last trades (Snoopy’s point), those are not what traders look at, that’s for public consumption and news reporting purposes. If you’ve ever seen one of those prices scroll by, placed a market order and received a different price than expected than you’ve experienced the disconnect between the last reported trade and the actual price. If you’re a buyer you look at the ask, if you’re a seller you look at the bid because the only price that matters is the price you can get, not the price the last guy got.

IMO (as a former series 55 licensed equities trader) MHB is correct because there are shares available to purchase *right now* at $4.97 per share. Once those are cleared up the price may indeed shoot back up, but right now that is the price. If he was basing his assertion on the bid that would be a different story.

Those domains aren’t going anywhere “down”.

Or is someone going to step up and say “Domain values suck! Don’t invest!”