At $6.5, Demand Media is trading approximately 16% above its all-time low of $5.5, and much below its post-IPO hype of $25. The stock was hammered last year following the departure of some of the core management team members, and also as a result of the company's reported loss and general volatility of earnings.
However, the company has since shown strong financial rebound and has also proven that it is not the management that is the core value of this company, but rather its strong brand, its superior technology of content trends and ROI expectation, its vast database of user behavior information and, above all, its extensive and reusable database of high-quality content, which will be relevant for many decades to come.
The most recent market overreaction to sales decrease and a mild share dilution adds to the stock's undervaluation.
Lastly, the potential sales and earnings growth from the company's domain-registration business driven by the new gTLD domains is not priced in.
they are 50% down on panda/penguin. check alexa/comscore stats. the stock should is worth $4.95-5.95 (max). i placed a 200K share buy order at $5.37 also, notice irrelevant purchases Hosenbaltt been making -- creativebug, society6. NOTHING is related to their PPC business. trying to exit while it lasts... i love them when google loves them, and i feel sorry for them when google slaps them.