Dial Global, Inc. Message Board

greenwichadvisor 2 posts  |  Last Activity: May 9, 2013 10:09 AM Member since: Feb 25, 2008
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    Please stop with the pumping

    by iknowitall12 Mar 14, 2013 12:55 PM
    greenwichadvisor greenwichadvisor May 9, 2013 10:09 AM Flag

    The split adds value in two ways: first by separating out Archeo, it will have a management team solely focused on growing that business. It has been a stepchild to this point. Archeo should be a cash cow with a growing dividend stream as they increase the velocity of domain sales. Second, with regard to MCHX, it becomes a pure play mobile advertising company which should increase the multiple on it and make it easier for someone to acquire without having to buy an unrelated business. (if such an acquirer is out there)

    Offsetting this increase in focus is that administrative and public company expense will increase as you have two companies instead of one.

  • greenwichadvisor by greenwichadvisor May 8, 2013 4:11 PM Flag

    The stock is up 25% in the last week and has broken out of its trading range to the upside. They have the right product at the right time with the click to call business. The question will be execution.

    With regard to Archeo to which no one attributes any value, if you take their average sales price per domain over the last few quarters and multiply it by the number of domains they have, it equates to over $5 Billion! Obviously you can apply whatever discount you want to this but the key for them will be to make a business of it and increase the sales steadily. BTW, they have a lot more domains than they mention with "over 200,000". It is closer to double that and they can continue to create domains as trends emerge.

    No one follows this stock as evidenced by how little there is on this board. I think the trend is up from here.

    Sentiment: Strong Buy

DIAL
0.400.00(+0.00%)May 22 9:30 AMEDT