Shares of Rightside (NAME) which we actually own some of have been falling like a rock.
Today shares fell below $7 which I guess stock market guys might call a support level, hitting an intraday all time low of $6.73.
Shares have recovered slightly and are trading as of publication at $6.83.
Volume is like yesterday, when the shares hit that $7 a share number, before closing at $7.10 trading just over 80,000 shares with less than 1 1/2 hours left in the trading session which is below the 3 month average of 123K shares a day.
Basically $560,000 in shares traded today.
Pretty horrible.
On November 16th shares were trading over $10 a share, so shares of Rightside are down more than 30% in 6 weeks.
Also pretty horrible.
Sooner than later , it will be a penny stock.
When that happens, I will just buy some to show my “support”.
This domain business on stock is a losing proposition as it is not sustainable
When that happens, I will just buy some to show my “support”.
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Why? Might be better off short selling it?
These guys run a business Marchex style, all the revenue gets eaten up in expenses. Would be bailing from this at current prices. This type of company that is not even worth the cash they have in bank.
Similar situation to Minds+Machines in terms of a tanking share price. Simply spending money on new tlds isn’t enough. They’ll run it into the ground.
Unfortunately I don’t have kind words for Rightside. I find their relationship with Donuts to be be opaque at best, they have debt and they seem to have had some insider selling, albeit tiny. I wish them well but frankly don’t understand how they will make money.
There is however no comparison to be made from this to Minds and Machines as one commenter made in a very off hand comment. MMX by my calculations made about $25mm in calendar year 2014 from private auctions, has over $40mm in cash in the balance sheet, has no debt whatsoever and has recurring revenue streams on just a very small initial roll out of their TLD’s of about $4.5mm pa by my calculations, This could easily increase 5 times next year IMO as the other TLD’s get going and should pick up from there.
MMX is clearly being run for shareholders, not surprising at to me as the Chairman is the largest individual shareholder in the company.
If Charlie Brown’s dog wants to go short – please feel free to have a go. The share is easy to borrow to short sell, but may not be so easy to get back in 2015 as the results are known. There were some large sellers in 2014, but my view at least is that this overhang has been resolved. I think 2015 should be an excellent year. Happy New Year!
Sorry my revenue figure for MMX was wrong as I wasn’t including the last announced PA results – that revenue estimate should be about US $30mm +.
New management of the registrar business is inexperienced in the domain industry and basic business mistakes are constant. The share holders have responded.
I believe the stock will go below $5 as soon as the poor renewal numbers for the new TLDs are revealed.