".... There could be further downside. Based on nTLDstats, it appears that the [new] gTLDs that Rightside owns are not marketable with its 79k domains year-to-date. The company could potentially continue to generate negative EBITDA as aftermarket services revenue decline, and I continue to believe that this is a stock that is misunderstood and is a short candidate." source: SeekingAlphaDomain Mondo previously reported on the "take down" of new gTLD domain name registry Rightside [trading under the symbol NAME] by the Seeking Alpha financial writer known as Thunder Capital Management [TCM]--see Domain Mondo post: New gTLD Registry Rightside, Rename It Wrongside?
Now, TCM has done it again in a Seeking Alpha post published yesterday: Rightside: The Sky Is Falling Down - Rightside Group, Ltd. (NASDAQ:NAME) | Seeking Alpha: Summary:
- While projecting 1500% growth in gTLD domains, Rightside may still default on its term loan in 2016.
- NAME has only 79k gTLD domains and growth has been near zero.
- NAME only has a 3% market share in the gTLD registry industry. NAME's gTLDs are esoteric like *.ninja.
- Management believes it will be breakeven in Q4 2014 due to the monetization of the gTLDs.
- The gTLD initiative has not ramped and will continue to be a short with at least 30% downside.
- Most New gTLD Domain Names Are On Life-Support, Infecting Other gTLDs
- Why ICANN's New gTLD Domains Are A #FAIL, Reason #1
- Reason #2 Why New gTLD Domains Are a #FAIL