Showing posts with label Downside. Show all posts
Showing posts with label Downside. Show all posts

2014-11-07

New gTLD Registry Rightside, Wrongside Still A Downside?

3 month stock chart for Rightside (NASDAQ:NAME)
source: Marketwatch.com
New gTLD Registry Rightside Group Ltd. (NASDAQ: NAME), has had a rough 2014. At left is the most recent 3 month stock chart for this stock [52wk high: $17.00; 52wk low: $8.36] market close yesterday was $9.41. As reported previously on Domain Mondo (New gTLD Registry Rightside, Rename It Wrongside? and Rightside dot Wrongside? Further Downside For New gTLD Registry?) analyst Thunder Capital has been "negative" on Rightside which trades under the symbol "NAME" on the NASDAQ.

Yesterday Rightside had a conference call on its Q3 2014 financial results. Apparently, the only way to make money off the new gTLDs is to withdraw your applications. That's exactly what Rightside reported yesterday that it did in order to realize a one-time gain of $8.6 million which saved the company from having to report a Loss for Q3 2014. However, even with that one-time gain, it reported net income of only $4,097,000 for the quarter, and still reported a LOSS on "Adjusted EBITDA" of (-$593,000).

Oh yes, there was an isolated trade of 100 shares in "after hours" trading on the NASDAQ that excited at  least one domaining blogger--Time: 17:58    Price: $12.53   Number of Shares: 100

Note that the "after hours" trade that preceded the above was also only 100 shares for a lot less:
Time: 17:46    Price: $10.15  Number of Shares: 100

No other "after hours" trades occurred after 17:58 (5:58pm) until NASDAQ "after hours" trading closed at 20:00 (8:00pm). It will be interesting to watch this stock in the coming days and months.

By the way, you can find all this information and  NASDAQ's clearly stated advisory about "after hours" trades posted on the NASDAQ website:

"Investors may trade in the Pre-Market (4:00-9:30 a.m. ET) and the After Hours Market (4:00-8:00 p.m. ET). Participation from Market Makers and ECNs is strictly voluntary and as a result, these sessions may offer less liquidity and inferior prices. Stock prices may also move more quickly in this environment. Investors who anticipate trading during these times are strongly advised to use limit orders."  source: http://www.nasdaq.com/symbol/name/after-hours

As for Thunder Capital, haven't heard from him yet, but whenever we do, it should be enlightening--on October 3, 2014, in the article published on Seeking Alpha, Rightside: The Sky Is Falling Down, he said: "The gTLD initiative has not ramped and will continue to be a short with at least 30% downside." At that time Rightside (NASDAQ:NAME) had fallen from $11.83 when he initiated coverage (Rightside - It's Trending on the Wrong Side) to $10.53 as of 9/26/14, and since then the stock has traded (on some days) below $9 a share. On October 8th, in a reply to a comment on his latter Seeking Alpha article, he wrote: "In my analysis, I actually project 1.5mm domain name sign-ups for 2015. If I used a "look through the windshield analysis," the Company [Rightside] would default in 2015." [According to Rightside's own reported Q3 2014 results, the company had, as of September 30, 2014, 15 of Rightside's owned and operated gTLDs  in "general availability" for an average of 89 days each, with a total of only 80,000 registrations.]

If you have any interest in this stock, a good place to begin "due diligence" is on the NASDAQ website pages for NAME (Note Domain Mondo's Disclaimer near the bottom of the web version of this page).

Caveat Emptor!

UPDATE: see New gTLD Registry Rightside Stock Tanks on NASDAQ (5 Dec 2014)



2014-10-04

Rightside dot Wrongside? Further Downside For New gTLD Registry?

".... 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: SeekingAlpha
Domain 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.
Read the full Seeking Alpha post here. TCM's analysis includes many revealing charts and other information, much of which confirms many previous postings here on Domain Mondo, including this past week:



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