Archive for July, 2011:

From $1,500,000 to $120,000 – A Domain Lesson Learned

Written on July 18th, 2011 by directnavigation13 shouts

I still buy domains. I keep a list on my desk and every so often I go through it. The problem I have is that I don’t go through the list often enough. I seem to realize that fact when I read about a name being sold that I had on that list.
That particular name was offered to me constantly at $1,500,000. While it is very good name, it’s not worth that to me. I would contact the owner less often over time mostly do the the fact that his asking price was so high and always the same. I realized today, that it had been far to long since we connected. Especially since that domain sold for $120,000. The name was OnlineDegree.com. For the price, it was an excellent buy. Congrats to the buyer.

Demand Media Loses A Billion Dollars In Valuation

Written on July 15th, 2011 by directnavigation7 shouts

Five months ago, Demand Media went public at $17 per share. Within a short time, the stock hit a high above $28 per share. It seemed like they hit the market at the perfect time. Internet stocks had once again become the favorites of Wall Street.

Flash forward to today, almost 6 months after that opening bell, Demand’s stock has tanked. It hit a low yesterday of 11 3/4. That means in a matter of a few months, the value of stock has gone down over ONE BILLION DOLLARS. Insiders, who have to wait 6 months after the IPO to sell their shares must be biting their nails as the value of their nest eggs continue to erode. My guess was that the stock would be around $10 at the six month mark. I guess in a few days we will all see what happens when additional shares are unloaded on the open market.