130,000 shares sold by CEO.
Was selling 65,000 +/- shares per month for the past year.
He just doubled his pace of selling.
Why not...the 2007 sales were at $11 to $14 per share +/-.
This year they will probably be at $5 to $8 per share +/-.
A cool $1 Million.
where do you get your valaution info from? You ever watch what domain names sell for?
Take a look at this, scroll down to the 2-4K sales. Many of these type of names look very similar to many of the non "major" names that Marchex has when your look at their portfolio.
RIGHT! But why were insiders buying in the 8's and 9's then if they didn't think the company was undervalued? over 2 million shares. According to you they are throwing their money away. There has to be something that they see that we are missing.
On a serious note...
Beijing.com alone COULD BE WORTH $5 to $10 Million.
They probably have another 25 worth $1 Million+.
100 worth $50,000.
500 worth $20,000.
1000 worth $2,500.
The balance are proabably worth $25 to $200 each.
Total = $77 Million to MAYBE $85 Million if they liquidated them over the course of 18 months!
Basically they probably have less than 2,000 domains worth any more than chump change.
If this company dropped to $125 Million valuation I would say it was a screaming BUY! Not BEFORE!
That is around $3.
$5 would be a risky speculative BUY.
$8 is overvalued.
$12 is RIDICULOUSLY overvalued.
Hanauer has his $300 Million from aQuantative deal with MSFT this past July.
He paid $12 Million for his 1 Million shares in MCHX.
Maybe he is counting on a nice loss on MCHX shares! LOL!
Either way it is a drop in the bucket for him.
And PAR Investments?
Wasn't it pointed out that one of the principles at PAR was a founder of Openlist? Didn't Openlist get bought for a ridiculously large premium?
http://www.farecast.com/about/board.do Brad Gerstner
I believe Openlist had GROSS REVENUE of $150,000 and was bought by Marchex for $13 Million.
Yeah...86 times revenue!
Ya think the guy at PAR owes anything to Marchex management? Huh? Do ya?
If it is such a good buy then why is it HUGE MONEY types are the only entities buying here (Hanauer & PAR)?
Why isn't Bill Day buying big?
Or how about the other Millionaire insiders? Why aren't THEY buying at these "BARGAIN" prices?
Start Company (shell).
Issue HUGE number of shares to self.
Buy two small also ran companies with marginal profitability in OVER HEATED and HYPED MARKET of paid search...(remember it is 2003).
Buy 7 or 8 small companies with relatively small revenues and earnings with little competitive advantages (pay HUGE PREMIUMS). Buy huge portfolio of domains at their peak revenue and earnings. These "direct navigation" domains are a cash flow dream that will 1.) float the company along for the 3 to 4 years you need to MILK it dry (thru dividend and stock sales) and or 2.) sell completely to a greater fool (ala Infospace).
Option 1 is well underway.
How much stock will they sell if it hits $3 per share?
Also...NOTE that the domain business is quickly dying due to the lost links from 2000, 2001, 2002, 2003...
This secondary traffic source of links is all but gone.
RELIANT upon the algorithmic search results from Google and the more expensive option of ADVERTISING on GOOGLE!