While the Dow Jones Average squeaked out a gain today the NASDAQ had another down day.
However most of the domain company’s stocks did well.
Demand Media which has been beaten to death by blogs actually rose almost 10% today to finish at $9.26
Web.com which agreed to buy Network Solutions for $540 Million the other day, rose for the 2nd consecutive day up 15% to almost $12 a share.
Shares of Web.com hit a low of $8 a share before the deal was announced.
So that’s an increase of 50% in 2 days in a horrible market.
Disclaimer: We have no position and have had no position in the last 90 days long or short in Demand or Web.com
Personally I like Verisign at this price level, (closed at just below $29) with something close to a 10% dividend and a 7% price increase guarantee for every 4 out of 6 year ongoing, I was tempted to buy in when it was in the low 28’s today but wanted to see if the market was in full melt down mode.
Disclaimer: Also don’t own shares of Verisign in the last 90 days.
Not for long, everything is gonna keep on poppin 😉
LS Morgan says
“In the short term, the stock market is a voting machine while in the long term, it’s a weighing machine…” – Graham.
On 08/04 dmd closes at 8.44, down from the previous days close 9.08.
Today, dmd closes at 9.26, up from the previous days close of 8.44.
The 52 week range is $27.38-$7.65…
If one thinks this the splog/made-for-adsense internet content business is due for a boom, they’re offering real value to the world and the -2.06 eps is just a freak thing, then this might be a buy point.
(the link is to a site that had the most hilariously awful “paid article writer” content I’ve seen in quite a while… If we have any guitarists here, give it a look. You’ll laugh. A lot of what comes out of dmd isn’t the slightest bit better)
I like both vrsn and nstr At these levels. nTLD potentials have yet to be priced in.
It surprises me that Demand bounced up yesterday.
I wonder if this is a ‘dead cat bounce’ ?
Rob Sequin says
Cramer featured web.com on his tv show a couple nights back. He loves web.com
Meyer, probably, will be at fresh lows soon enough.
“Meyer, probably, will be at fresh lows soon enough.”
This week things are going to get pretty interesting 😉
domo sapiens says
and no proven support level from the technical point of view
Down baby Down
Nearly entire business model based upon Google Dei’s blessing not good
Look at this!
DMD since the IPO.