Who's selling this stock at 12x next year's earnings on an earnings growth rate of nearly 30%. Where is all this supply coming from? And what is a fair multiple for this company in the wake of the biggest catalyst genealogy research has seen in a decade, the release of the 1940 US Federal Census in April. Even Netflix has a 40x multiple in this market. Something is very wrong with the market's interpretation of ACOM -- and it could be related to misinformation.
From WSJ article: "For a lot of people, they've been waiting for years," said Maira Liriano, manager of the library's Milstein Division of United States History, Local History and Genealogy, who hatched the idea. "There are mysteries in their family history that they know this census will solve."
Former subscribers are just waiting to sign back up to renew their genealogical endeavors beginning mid-late 2012. The valuation on this stock is ridiculously cheap -- the PEG ratio is 0.4. How is the market justifying such a valuation.
agreed. lots of downward pressure here...for reasons unbeknownst to us common 'every day' investors. probably institutional buying/selling going on here. lots of manipulation around this stock. given fundamentals and relative strong growth rates...should be $30-$35 stock right now...based on my intrinsic valuation.
First, remember that the un-indexed raw images are being made available on the NARA website for free on April 1, and there has been publicity re how to find your ancestors in this un-indexed database (something that will take a LONG time, akin to reading every inch of the actual microfilm, once you even know which Enumeration District to read - some EDs have hundreds of pages in them). Second, other companies besides Ancestry.com are indexing this database, using volunteers - who wins the race to start posting indexed entries is a big unknown. Ancestry.com still outpulls other genealogy websites by a huge margin, even when up against free sites, because they present the results in a way that's easier to comprehend, and they offer more fields in which to insert search terms, so you don't get 60,000 possibilities, as I've seen with other search engines.