Marchex Hits 52 Week Low

Shares of Marchex traded as low as $3.13 today setting a new 52 week low for the company

Marchex market cap is now only $106 Million well below what it paid for Yun Ye’s portfolio many years ago.

The 52 week high for the company is $10.97.

Marchex’s volume at noon, is already 3X the average trading volume.

 

Comments

  1. says

    Yahoo says they are still trading at 75x ttm earnings.
    Google and Yahoo trade at around 17x ttm.
    So there is still some meat on that bone.

    I wonder if the possibility of the new GTLD program possibly rendering the domain portfolio worthless or at least a small fraction of what it once was is having an affect on the stock price. The market is always looking ahead. An infinite supply of domain extensions is going to have a catastrophic affect on the value of existing domains. Economics 101. When supply goes way up, prices go way down.

    When the new GTLD’s go live the public is going to find millions of parked pages waiting for them.
    Can’t wait.

  2. JNet says

    TIMMMBERRRRRR !

    ….yet “sometimes” after a public company’s stock languishes just above sea level for a long time, with no big, sustained & clearly attainable rebound in sight…. the “insiders” of a company “look the other way” a bit..so they can then to a buyout/take private more cheaply…. can be dangerous ground to walk on if it get’s “proven” via legal channels…. Not say’in that the case here…..just speaking generally

  3. BrianWick says

    New GTLD’s No Thanks as well albeit there is a lot of money in it – but nothing to do with brand – and brand is all that i am about – the real issure here is all the zipcode and other bs that came along with the ride which does not have much value in my book’

  4. JNet says

    @ Brian Wick
    “publically held domain business ?”
    ————————–

    Back in late 2007 NameMedia file an approx $175 Billion IPO registration statement with the SEC, then, thereafter filed a few ammendments into 2008,…then in December 2008 decided to totally withdraw (cancel) the SEC filing…. and thus, totally abandoned it’s IPO efforts.

    Wonder if their Board and/or institutional VC/Private Equity investors will ever consider an IPO launch again ??? … How will the VC/PE guys eventually exit their investment ? ….. Will it be a Buyout or Merger…and by/with whom ???

    Will KKR and the other private equity funds liquify/exit their $-Billionish-$ investment in GoDaddy via an IPO ?? …. or ??????

  5. domainguy says

    the problem is their biz model or lack there of. marchex has not found the correct monetization model for their zip codes.
    @mike mann you could buy shares and go on the board even suggest better monetization methods.your portfolio should closely resemble marchexs portfolio?

  6. says

    Hello Michael,

    With the current Bear Market 3 out of 4 stocks will suffer. Looking for a psychological Blow out on high volume between now and sometime just before elections. Look for new leadership companies to take the stage in new Bull Market. WWWW, and QIHU are on our watch list and NUAN in low 20s good buy to a Target of 30s in reflex rally.

    Gratefully, Jeff Schneider (Contact Group) (Metal Tiger)

  7. Aggro says

    Where are all the ppaer traders who bragged in earlier threads about supposedly buying at $10,$9,$7,$6,$5,$4 etc…LOL

    It’s clear Marchex’s “advertising” business model is a fail.
    And that it’s business model – like every other domainer – is sales, sales, and more sales.
    No mystery about this.

    As for buying enough shares to make your voice hear…forget it.
    Share sturcture is such that management own shares which have a disproportionate amount of voting power compared to the ordinary shares available to the great unwashed.

    As for so and so’s portfolio worth $100M or so…dream on.

    No Private equity/VC investors will fall for that shit like the investors of Internet REIT & others did 4-5 yrs ago of buying at an average of $1000 per domain across the WHOLE portfolio of 100,000 domains, warts & all.
    That game is over.
    Fool me once…yada..blabla

    Domaining is the only industry where someone can be worth supposedly millions – and not have $10,000 in the bank.
    Look at all the wannabe middle-tier domainers with cash flow problems who have to sell their granny to pay the reg fees…LOL
    It’s all notional fictitious fantasy wealth based off of reading some “similar domain sale recorded in DNJ & marking up the fantasy wealth accordingly.

    Plus these guys won’t be around long enough to “collect” whatever the notional wealth is based on their domain portfolio.
    They now have to sell em off piece meal…do the math how long it will take for a portfolio of 100,000 domains

    No “default loser”..LOL

  8. Tom says

    Rob is right, take this thing private, fire everyone except 3 people, 1 web person, 1 secretary, and 1 admin, and park the domains, they will be profitable in no time.

    They have a few names in their portfolio which can easily get 6 figures.

  9. Michael H. Berkens says

    @Tony

    Hard to say what Marchex has left

    They have pretty consistently sold $1M-$1.5M a quarter in domains but they don’t report sales, so we don’t know if its 1 domain or 1,000 domains or what the domain were

  10. Korian Z says

    Too many zipcode domains.

    I’ve never searched for something on my local zipcode and I don’t think most people do.

    Also, zipcodes have no personality. How boring and hard to type in.

    They should sell those for $200 a pop except for the very best ones and move on.

  11. 04 says

    you don’t know what those zip code domains make in ppc. they might pay for themsleves. in which case, they are worth holding. if they were part of yun ye’s original collection, chances are they are self-sustaining.

    brianwick is right, there no point in making domainer porfolios public companies unless you are trying to fool investors. of course that is how silicon valley and internet vc works. cases in point: groupon, zynga, facebook. it’s all about the “exit”. not the long term success of the company.

    marchex, demand media. these should not be public companies. the internet is an extrememly fickle audience, like shifting sands. it’s wrong to shift the risks of domaining onto unsophisticated investors. but for the guys running these outfits “wrong” is a difficult term to define.

  12. 3D is my life says

    Self sustaining? What, to cover reg fees?

    They’re probably not making jack and whatever it is, it’s a blip compared to whatever it once was.

    Take 90210.com for instance, Alexa rank is over 4 million. What is that pulling in?

    I checked a number of them that they featured in the press release when launching myzip.com. Many don’t have an Alexa rank.

    One big heaping pile of junk.

  13. 04 says

    if you offered me that “pile of junk” with the understanding that it would cost me nothing to maintain it — i.e. it paid for itself via ppc — i would happily take it. why? for no other reason than because eventually someone is going to want 90210 and other junk zipcode domains. no loss to me. it costs me nothing to keep them.

    a domain does not have to be in the alexa list to make enough income to pay its reg fee.

    do you understand how the alexa list is generated?

    what you think is a good domain and therefore valuable, and what a domain actually earns in ppc may be two different things. yun ye was not hand reg’ing 3d domains that sounded good to him. he wasn’t checking the alexa list and making silly inferences about what domains are worth. he was picking up dropping domains in bulk. those domains had existing traffic. the rest is history.

    again, marchex should not be a public company. but plenty of domainers would love to inherit their portfolio.

  14. Tom S says

    On zipcode domains,
    I own most zip codes for Manhattan NYC such as 10028realestate.com and have received some offers for them. I don’t get hardly any direct type-in searches though. My offers have been in the low xxx so I haven’t accepted any of them. I have not tried to sell them to real estate agents yet, but have been told by an agent I know in my hometown that I could sell them to a Manhattan agent. I agree that just owning zipcode.com has little value, but having zipcoderealestate.com focuses on a specific area for development.

  15. 04 says

    that said, i don’t think 90210.com was an original ye portfolio domain. still, if the carrying cost of these domains is effectively zero, they are worth having. inevitably someone will want a domain like 90210.com and be willing to pay an inflated price. sad but true.

    @domainbell: you should know how to generate that list if you are a “serious domainer”. you are at a huge disadvantage by not knowing. the way to learn how is not to read domainer blogs and forums, but to read “technical details” about the domain name system. all that info is public. the “dirty secret” of domaining is that the domain name system is actually very simple. like anything it can be made complex with human intervention, and the experts (consultants/back-end providers/ICANN) would prefer that you believe it is very complex. blogs are a diversion. invest in your own learning. it will be worth it.

  16. 04 says

    @domainbell: sorry that does sound like an insult as i reread it. please accept my apologies for any offence. what i meant to say was “you should learn how to generate that list yourself if you want to be a serious domainer.” serious=having all resources which you should have at your disposal. there’s that old saying about giving a man a fish versus teaching him to fish. it would not be well-received if instead of giving him a fish he was told it would benefit him to learn to fish. that is probably not the way to encourage him to learn (though it would be a good way to draw his ire). however we know it’s not helping him in the long run to just give him fish and pretend he couldn’t catch fish himself (in fact if he were to learn he might learn to be a better fisherman than his benefactor!). to get the message across, some tact is required.

    pffft indeed. today i’m tactless. sorry.

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