Yesterday DomainNameNews.com, reported on Godaddy dropping DBS Domain Distribution Network from its system.
Domainnamewire.com just published a blog raising some excellent points how Godaddy’s action is going to effect DBS, very negatively
Here is another subtainial problem for DBS, there shares aren’t trading.
No the stock is still listed on the Australian Stock Exchange, but there are simply no trades taking place.
As far as I can see the stock hasn’t traded a share since July 6th.
Today is July 17th.
The “ask” price, which is the lowest price that a seller is willing to sell shares for is currently 14.5 cents, however the bid price, the highest price that any buyer is willing to pay for shares is at 7 cents.
And not one buyer or seller has been willing to meet in the middle in almost 2 full weeks.
That is a problem for a public company and its investors and a huge opportunity for a third party to acquire the company.
What valuation does the company have? Who do you see as potential suiters?
Elliot
According to Business week the company has 78 million shares outstanding so at $.15 cents the market value is $11.8M
http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ric=DBS.AX
But if the most any buyer is willing to pay for a share of stock right now is $.07 the value could be 1/2 of that.
The real question is if your a large shareholder, 780,000 shares being 1% of the company, what do you do with your shares?
The company traded less than 200,000 shares in all of July.
http://www.eoddata.com/StockQuote/ASX/DBS.htm
So how are you going to get rid of 780,000 shares?
So let’s say someone offers $.25 a share, as a large shareholder you might be temped to grab it, $.20 maybe.
at $.20 your looking at less than $16M for the whole company
Suitors would be the usual suspects Oversee.net , Namemedia, Demandmedia, Marchex or a large domainer.
Would love to take a look at their portfolio and see how much of that can get you to $11.8MM would be interesting.
Fresh
$11.8M for 600,000 domains is $20 a name
Its interesting have always loved Fabulous, but the Ceo left and now Dan left and he was a great voice for domains overall at all the conferences. I have been meaning to write an article about Fabulous, basically asking is Fabulous still Fabulous ?
The stock price is too illiquid I have been thinking for a long time about buying some. I had bids in to buy Marchex at $3 nothing got done, should have paid $3.06 back in May, the stock was up nice today and about 40% from the $3 low.
Those would be in Australian dollars, too, which are worth approximately 80 cents US these days.
i feel like all domainers should support Fabulous and DBS in one way or another. They have done a lot for the industry over the years and continue to innovate and push the industry forward. Fabulous is by far the best registrar in this industry. No other registrar even comes close. No other registrar offers a comprehensive set of tools such as Fabulous. If you’ve never used Fabulous, you should check it out. Not to mention parking program at fabulous performs well too.
.. just a satisfied Fabulous client.
Yes I second that. Fabulous are a great company to deal with and their parking, quick registration, domainer tools & support and second to none (and ive used them all).
Another great step they have taken is their USB key that gives my domains another security level so domains cannot be hijacked/transferred without it, which lets me sleep better at night!
Cheers mike et all…!!!
iD
Irish
Unfortunately Mike et all already announced they were leaving
Thats a shame.. I can only hope the level of support & registration/renewal rates stands! Best to Mike in the future!
iD
@MHB – I’d just like to clarify that I am not leaving Fabulous (or Dark Blue Sea). I’m actually coming into my 7th year with the company, and have no plans of moving on.
Mike
Good to hear.
Thanks for the correction.
Congrats on 7 years, quite an accomplishment
Good stuff Mike. Keep up the good work mate!
iD
Wow that is a relief to hear that Mike is not leaving Fabulous. He is a great asset
as well as the rest of their crew. He/They have always been right there and on top
of any issue that should arise and has gone out of his way to be helpful …. and with
a personal touch. Something I haven’t found with any other registrar so consistantly.
I hope that things pick up for Fabulous.com and we don’t lose yet another good
company to a buyout.
Z