I bought this as a long shot. I don't expect it to move anytime soon, I am hoping that some year a competitor comes in and purchases the company for a premium. That and their financials look healthy for a company of this size. Anyone else have any hopes and dreams for this company?
As previously stated, they are not buying back old issued shares. They are buying shares bonused to key executives. Who else is giving up their shares when they make the dutch announcements? They bonus themselves 7 million shares at a lower per share price. Then they dutch auction buy back the shares. This is perfectly legal, jsut not ethical.
Here are the latest dutch auction results:
Oct 27, 2010 DIKER MANAGEMENT LLC Beneficial Owner (10% or more) 2,500,000 Indirect Sale at $0.70 per share. $1,750,000 Jun 11, 2010 NOSS ELLIOT Officer 13,100 Direct Purchase at $0.68 per share. $8,908 Jun 11, 2010 LACUNA LLC Beneficial Owner (10% or more) 2,009,400 Indirect Sale at $0.70 per share. $1,406,580 Jun 11, 2010 RALLS RAWLEIGH HAZEN IV Director 2,009,400 Indirect Sale at $0.70 per share. $1,406,580
Nice to see that when you need some ching, you have your .56 stock options to sell for .70 per share. Right boys!!!!!! Destroy your credibility for .14 a share. NICE!!!!!
I guess I have a problem with use of shareholder dollars to buy back stock with debt outstanding. It benefits employees more than shareholders and changes the debt to share count. If you calculate the rough buyback vs payoff of the debt shareholders would be in better position for them to payoff obligations first. A company this small cannot borrow at attractive enough rates to justify the move.
In addition reduction of share count only increases insider ownership at this point. They would have no debt and better operations if they hadn't done' the mailbank acquisition at dot com boom prices then used the guy down the street to integrate the mail system only to have problems. They historically are penny wise and pound foolish. That is why this is trading lower the last day, a lot of shareholders are looking to get out.
That being said, overall the stock should go up in the next year so I'm holding for now. I am only disappointed since they could have done far better the past 3 years if they had been more conservative about expansion when they were sitting on so much cash.
One of Tucows' is on the auction block. Could help Tucow gain some attention in the space.
"GoDaddy.com, the closely held website that registers Internet domain names, has put itself up for sale in an auction that could fetch more than $1 billion, people familiar with the matter said.
Qatalyst Partners, the boutique firm run by veteran technology banker Frank Quattrone, has been hired to shop the Go Daddy Group Inc., which runs the world's largest domain name registrar, these people said. Private-equity firms are expected to bid for the company, which currently has more than 43 million domains under management. "