1)KNOT’s Gift Registry 360 will be the default registry for all brides producing large commissions from partner retailers like Macy’s, Pottery Barn, Williams Sonoma, Target, Crate and Barrel, JC Penneys, etc.
2)Many Revenue Streams: Magazines, Local Ads, National Ads, Merchandise, TV programs, Sponsor links, Membership fees, Web TV programs, Registry commissions, Travel.
3)KNOT has almost 100% enrollment of new brides every year. KNOT has the best access to brides and their budgets of any company in the bridal/wedding business.
4)Incredible margins, a sure sign of a successful company. And, margins will only increase as they leverage their franchise and content even further.
5)One of the best customer lists in existence; complete with the dates of people making the largest purchases of their lives. This list and access to this very spendy group would be a very strategic and valuable asset for many, many companies.
6)XOXO lifestages model is starting to enjoy real reach as theNest and theBump start to have traction and strong communities.
7)The Nest and the Bump expand their lucrative wedding franchise into married life and parenthood; two equally lucrative markets with long time horizons.
8)Phenomenal synergies and transition between their businesses with great communities existing in each.
9)Expansion into Australia and China will mean significant growth with very little cost as content will easily transfer to those market. As they get it right, other markets will follow.
10)XOXO is very business saavy having made the right acquisitions to expand their wedding, married life and parenting businesses; acquisitions like Wedding Channel, Lila Guide, breastfeeding.com and the number one registry on Facebook; wedding book.
11)XOXO advances in a very methodical and cost effective manner, never overspending on operations, capital investment or acquisitions.
12)The list of potential acquirers is very long and includes: Google, Macy’s (a current shareholder), Target, Amazon, Martha Stewart, Limited Brands, IAG Interactive, etc. Don’t be surprised if a first offer produces a bidding war for KNOT.
13)XOXO has a market cap under $300 million with over $125 million of cash on hand.
14)Some of the best and most informative sites on the internet with a webcast network built in and live webcasts each week – their sites are very sticky which advertisers love.
15)One of the best management teams on the internet, having guided the KNOT thru the tech crash of the late 90’s and this current recession, all the while building a great franchise and arguably the best media company on the internet.
16)XOXO is very tech saavy having moved very shrewdly on to Facebook and twitter, always ensuring their franchise is current, leading, and relevant.
17)Google’s CEO recently said “internet ad market is coming back”. XOXO will be an enormous benefactor as internet ad spending returns and grows.
18)David Lieu, CEO of Knot, has guided the KNOT since its founding and has a very focused vision for the company’s future.
19)Motley Fool has been a strong fan and advocate of XOXO for years. MF believes XOXO will be a big winner and writes articles about XOXO often.
20) 2011 and 2012 will be great years for XOXO as the rest of Wall Street and small investors catch on to what is going on at KNOT.
Listened to that last quarterly call. That sounded POSITIVE to me and given that my perspective on the US economy is that we are, and have been improving, BELIEVE the upcoming call will be good as well. Took a position today and looking to add as they confirm their ability to execute on growth.
Time after time they've demonstrated they CAN NOT execute on growth. When the top line moves they kill themselves with SG&A. Poor management, but that's nothing new around here. Roamer's top 20 has been cut in half, and what's left remains up for debate. Perhaps a PE firm will make an offer and clean house / sell what's left to a bigger media firm, I think that's the best KNOT longs can hope for at this point, and it's a longshot.