Stormy waters for Dark Blue Sea

[HarveyJ]

Don't know if people here invest in the domaining companies as well, or just the domains, but has anyone seen DBS' latest stock value?
$0.18 a share. That's about 15% of their value this time last year.

http://finance.google.com/finance?q=ASX%3ADBS

What do you reckon, good time to buy in? Or leave this particular sea for smoother sailing entirely?

[jdk]

Look how straight those lines are. What do they have 1 trade per day?


http://newsstore.smh.com.au/apps/pre...GCA00866716DBS

[stewie]

very interesting, thx

any other domain companies listed?

[HarveyJ]

Well, they do have roughly 45,000 domains that they expect to be able to sell for an average price of roughly $1,000AUD.
Considering the acquisition cost of their primary product, and the average sale price of said product, there's no way the company will stay that low in the long term.
It'll either go bust, or be bought out... If it goes bust, you'll be the first to know, and as a shareholder there may even be the option to snap up some domains. Or if it gets sold, your shares will go up.
Win Win I say.

And at that share price you could probably buy a controlling share at those prices for less than that and hand the domains over to yourself, and then sell off the physical assets on eBay.
Corporate raid hostile takeover, 80s style!
[/humour]

[DomainMagnate]

Isn't that the company that operates fabulous.com?
This is a bit scary

[ck89102]

Isn't that the company that operates fabulous.com?
This is a bit scary

It is. However, Dark Blue Sea did an interesting Investor Presentation yesterday and the company is quite financially sound, according to the public records.
Check out their web site & very recent releases under Investment Relations.

[HuntingMoon]

seems undervalued to me.

[Yusio]

That site you provided stated it was at .20 a share now?

[stewie]

This brings up a good question...and someone from Fabulous.com feel free to step in here.... What happens if this company went down?,...What happens to any domains you own and are regged there???

[radioz]

Looks like decent domain sales but fading traffic revenue partially related to the economy is the main problem. Perhaps domainers hubris about not being affected by the economy may eventually have to be moderated some. Also, stock value doesn't always really give a full picture of a companies condition. Some prices are inflated while others are trading below actual value. This is a mind game in part, of course.

From:

http://newsstore.smh.com.au/apps/pre...GCA00866716DBS

June Quarter Trading Performance

The company had a mixed trading performance in the June quarter reflecting a good
domain sales performance but ongoing difficult trading conditions on the traffic /
advertising side of the business.

Domain sales in the June quarter were approximately US$2.8 million, significantly
better than both the March quarter (US$1 million) and the corresponding quarter in
2007 (US$640,000). This was due to three factors.

Firstly, secondary market sales of domains to retail buyers, primarily through the
Domain Distribution Network (DDN) have continued to show growth as the various
DDN partners (including GoDaddy) improve their respective sales processes.
Secondly, the company sold a premium domain name for US$250,000 during the
quarter.

Finally, the company sold some domain names to other professional domain name
investors. This last factor highlights an important point about Dark Blue Sea - the
directors see the bulk of Dark Blue Sea's shareholder value residing in the
company's domain name portfolio. The domain name portfolio gives the company
considerable flexibility in managing the business, reported profits and liquidity.
Further discussion about the domain name portfolio is contained below.

Dark Blue Sea is a US centric business that generates most of its revenue from
direct navigation advertising which is part of the US online advertising industry. The
key factors that are currently driving the direct navigation advertising industry are
7 the weaker economic environment in the US
7 generally fewer advertisers (as observed by Dark Blue Sea) leading to a
reduction in bid prices and coverage and hence overall yield received by
Dark Blue Sea
7 changes to the way that online advertisers can place advertisements via the
advertiser interfaces of the major search advertising networks; and
7 an overall uncertain strategic landscape stemming from the unsuccessful
takeover bid for Yahoo by Microsoft and the subsequent outsourcing of
search advertising to Google by Yahoo.
Detail commentary on each of these factors was provided in the March 2008 Quarter
KPI report lodged with the ASX on May 6, 2008. Since the release of this report
three months ago, trading conditions have continued to deteriorate and the outlook
remains uncertain.

[tonyfloyd]

It is. However, Dark Blue Sea did an interesting Investor Presentation yesterday and the company is quite financially sound, according to the public records.
Check out their web site & very recent releases under Investment Relations.

so was Lehman Brothers......up until.....KABOOM!

[HarveyJ]

so was Lehman Brothers......up until.....KABOOM!

Not quite.

Australia has strict regulation, VERY strict in comparison to the US, when companies are publicly listed.

Fundamentally, the regulation down under provides for companies that are substantially less likely to be tipped off the perch.

[Honan]

Don't know if people here invest in the domaining companies as well, or just the domains, but has anyone seen DBS' latest stock value?
$0.18 a share. That's about 15% of their value this time last year.

http://finance.google.com/finance?q=ASX%3ADBS

What do you reckon, good time to buy in? Or leave this particular sea for smoother sailing entirely?

The company obviously thinks it is a good time to buy
They say their shares are better value than domain acquistions
They want to buyback 10% of their own shares
Subject to shareholder approval on 13 Nov
Refer to company announcements on asx or dbs sites