Today a new seller hit the Sharespost site, offering 5,500-20,000 shares for sale for only $4.97 a share.
For Oversee a sale of a block at shares at its former asking price of $7.35 would have meant according to Sharespost a valuation of over $1.1 Billion dollars for Oversee.net.
At the new asking price, Oversee.net would only have a valuation of $760 Million.
That’s a haircut of more than 25% in just 4 months.
Ouch.
Since our intial post in March several other blocks in Oversee.net have found their way onto Sharespost without any sales
Other blocks of shares of Oversee.net still for sale on Sharespost are at $7.35 a share, $6.15, $6.10, $5.95, and $5.30.
With this new offer to sell at $4.97 they’re are still are no buyers as of time of publication.
(you will have to sign up and qualify with Sharespost to see the actual offers to sell stock)
The share price isn’t “falling like a rock” if it hasn’t even been traded.
Snoopy
Like the stock market the price is based on bid and ask.
If the ask price keep going down I think its fair to say the price is sinking like a rock.
The price is what the shares trade for, did they ever trade at $7.35?
Looking at what the ask is and making a statement of value based on that would the domain industry equivalent of valuing a domain based on asking prices at Sedo.
First thing they need to do is rebrand themselves to a .dot bomb – like OverPriced.com, OverShot.com or OverValued.com – but certanly not OverSold.com
There have been sales however you guys just haven’t seen them on Sharespost!
The most notable recent sale was one that occurred in late 2009 from what I understand … Where one founder Lawrence Ng wanted to bail and sold at supposedly a huge discount thus giving control to the private equity investors. This is what was is called the “control premium”.
I know people who know the inside scoup, and it wasn’t pretty. I read about it on DM Confidential as well as by talking to industry insiders. Do a search you will find it
Yeah, I agree with Snoopy, I had heard also that the shares have always been under $5. There may have been asks for the $7 but the bids have never been there.
it’s never a good thing when Insiders bail out.
There is something wrong when you have to go thru so much red tape just to get price on a domain with no traffic ….
At the end of the day the Frank-Schilling “Hardly any frills / one Man orchestra ” works best , I have a strong feeling he reads every piece of email Nameadmon receives …
I am with you Domo,
Ross Perot, Howard Schultz & and their iReit proved that you can’t just buy your way in with a bunch of Corporate America MBA lifers having “Team” meetings over Starbucks Coffee.
– Brian
Snoopy
Ok so say its like a price of a house, If I offer it for sale one month for $1M and the next month for $850k and the following month for $750K, well the price isn’t going up
Marchex is valued at $163m. How the heck is Oversee valued anywhere near that valuation?
Rob
“Ok so say its like a price of a house, If I offer it for sale one month for $1M and the next month for $850k and the following month for $750K, well the price isn’t going up”
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The asking price is meaningless when no trades are actually happening.
If a house is worth $500k and the seller asks $1million, the 850k, the 750k, it doesn’t say a thing for the direction of prices, all it says is that the seller is being unrealistic.
To say the Oversee share price is “falling like a rock”, whilst not having any information about actual sales (ie the share price), well that is poor quality blogging in my view. It is just a headline, with no substance.
Marchex is valued at $163m. How the heck is Oversee valued anywhere near that valuation?
Rob
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I haven’t actually seen Oversee’s financials, but I think it is a much larger business. The other thing is Marchex has never really made money, not the last time I looked anyway.
Rob, Comparing MCHX to Oversee is like comparing a cheap hooker to Audrey Hepburn. Take a look at Yahoo Finance and you’ll see why – http://finance.yahoo.com/q/is?s=MCHX+Income+Statement&annual
One flaw: you need to have enough liquidity (enough buyers /sellers) to really see the price. Is this Sharespost site that popular?
Einstein
Since watching Sharespost I have seen facebook shares trade form $30 per to $72 Per in the same time frame
There is action
Matt,
and the Oversee financials are where?
Oversee.net Share Price Is Falling Like A Rock because it is an OVERsee…
get it?
Anyway, the next domain fest should be held at the Gulf Coast to support the local business down there.
Everytime an asian insider dumps his stock and splits there is trouble coming lol Enron for example… I kid of course but not really.
@Josh,
I like the Enron reference – it is all about the stroke – sometimes using both hands – and letting someone else clean up the mess
well, i’m an OS employee and this asian kid did more than just dump. lawrence blocked a lot of us early employees from getting liquidity. Lawrence, i busted my ass for you for years and this is how you treat us?
For once in my life, I think I actually agree with Snoopy 🙂
If Oversee’s stock drops that low, it’s time to buy.
Those domains aren’t going anywhere “down”.
Or is someone going to step up and say “Domain values suck! Don’t invest!”
Both Snoopy and MHB are correct, but MHB is more correct.
There are actually two prices to an equity share, the bid AND the ask. The difference is called the spread. When valuing a company the bid is not as important as the ask b/c although there may not be any buyers at a given price if the owners aren’t willing to sell it’s a good sign. However, when the owners *are* willing to sell at a low asking price and *there are no takers* that’s a very bad sign. In actuality it means that the true value of the company is LOWER than the ask *at this moment in time*. While it’s true that the quotes you see scroll across a ticker and plotted on the charts are the last trades (Snoopy’s point), those are not what traders look at, that’s for public consumption and news reporting purposes. If you’ve ever seen one of those prices scroll by, placed a market order and received a different price than expected than you’ve experienced the disconnect between the last reported trade and the actual price. If you’re a buyer you look at the ask, if you’re a seller you look at the bid because the only price that matters is the price you can get, not the price the last guy got.
IMO (as a former series 55 licensed equities trader) MHB is correct because there are shares available to purchase *right now* at $4.97 per share. Once those are cleared up the price may indeed shoot back up, but right now that is the price. If he was basing his assertion on the bid that would be a different story.
It’s impossible to say whether the price is “high” or “low” since we have no way to value the company. Especially in the absence of actual transactions at any price. There’s no bid. Just offers.
Were a transaction to occur, it would give a baseline “market cap”, but against that, we have absolutely no way of knowing whether the buyer got a deal or the seller hit paydirt. Which is a big reason why these companies are so illiquid. I think an investor would have to have rocks in his head to buy any shares in a company where he couldn’t get a look at the financials and filings.
When the insiders are finding a way to get out and another 144 sharholder did not buy up the stock – it is not good – further commentary withheld – save your money – another 1Reit implosion is coming – I am salivating.
Brian
I don’t agree with that
I’ve been watching shares of Facebook selling by insiders for over a year and the price has gone from $30 to $70 with shares trading at numbers in between.
If you an insider and want to liquidates a portion of your holdings I don’t think that’s an indication of trouble at the company.
My point is as the asking price continues to fall, it drags down the entire company’s valuation
You have to keep in mind that any sellers need to discount their offers in order to price in the illiquidity and uncertainty of these issues. Anything can happen between now and when these shares will finally float publicly, including the realistic possibility that it may never happen.
Also, within any company there are a million reasons insiders sell that speak nothing toward the company’s health. Founders included. Yes, there are telltale signs to the patterns of insider buying and selling, I don’t see any particular foreboding here, other than that nobody has put out an offer yet at a low enough price to bring out a buyer.
That said, I still maintain there are far better places to put your capital than into an opaque illiquid company that may or may not someday go public.
Oversee.net is a very large domain name portfolio holder. However, it is not quantity but quality that matters. With time quality of available domains decreases and the prices of leftovers grow. There are onlyPremium Domains now. This is great for the portfolio holders grow by “mergers and acquisitions” of domain names. Is Oversee.net much diffferent? They buy and sell and monetize. Oversee.net’s share must all improve: Investors generally expect continually rising sales, pofit, growth, market share. Failure to perform to meet expectations leads to loss of faith in the company. When this happens, the value of the company’s shares decreases. The result is that people do not want to hold the company’s stock. If the company’s stock collapses it may be totally prevented from raising additional capital. The time will tell. It was interesting to observe Dark Blue Sea (Fabulous) stock prices raising and falling.DBS was publicly trading, had plenty of illiquid assets: more than half a million of low quality names. It’s stock had almost collapsed. And this was not because of the domain prices falling. DBS was unable to innovate. It is no longer a public company. This is not uncommon scenario. Oversee.net is likely dependant on injections of capital to continue operating. How soon they will be able to have access to the funds through their business portfolio holdings? Can they innovate? Can they afford to grow by mergers and acquisitions? Is there another way? Can they compete effectively? Times are changing…
RL
Of course Oversee.net has a lot more going than just being a large domain name portfolio holder.
They own a top 10 domain name registrar which is alone is quite valuable and saleable and DomainSponsor.com which I believe is largest parking company using Google’s feed.
They also own their own auction platform which appears to be very profitable.