According to several reports Demand Media is going public tomorrow (another report here).
With a target price of between $14-$16 a share, I got a call today from a broker who said they were oversubscribed and they expected trading to being north of $17 a share.
There will be many people at Domainfest next week with restricted shares in their pockets and Demand becoming public will add some extra attention to the domain industry during its busiest show.
LS Morgan says
January 25, 2011 at 6:27 pmPay close attention to the changes at G and you can get ahead of the market on this one.
Jeff Schneider says
January 25, 2011 at 7:22 pmHello Mike,
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Brad says
January 26, 2011 at 2:49 amI think it is time to load up on put options.
Brad
Brad says
January 26, 2011 at 4:21 am“Demand Media said it posted $3 million in losses on $179 million in revenue for the first nine months of 2010. It estimated fourth-quarter revenue to be between $71.5 million and $73.5 million, with a bottom line somewhere between a net loss of $1.9 million and a profit of $600,000.
The company had posted a $30-million net loss on $198 million in revenue in 2009.”
Not exactly sparking financials there.
With generally garbage content, and more competition daily, I am just not seeing the upside here as they rely far too heavily on search engines like Google ranking their content well.
Brad
Joel says
January 26, 2011 at 9:55 amWell said Brad. I couldn’t agree more.
Joey Starkey says
January 26, 2011 at 2:31 pmIs Google not basically basically gunning for sites that utilize their business plan?
I think I will keep my few odd cents tucked under my mattress.
William says
January 26, 2011 at 10:46 pmThis is a good short depending upon how much of their revenue comes from content farms (obviously Enom is a good business). I predict Google will cease doing business with them within 12 months.