Friday, March 18, 2005

Victims of pay-per-click ad inflation

The most striking theme that ran through the Q4 financial results of Internet companies, irrespective of size, was the impact of rising pay-per-click ad prices. The winners were the ad brokers - Google and Yahoo. The losers were companies that rely on advertising to attract traffic, as their marketing expenses grew faster than their revenues.

This is a critical theme for investors (rather than short-term traders). Do you own stocks in companies that are dependent on advertising and helpless in the face of rising costs? Here's a list of the victims, with the relevant stats and comments from The Internet Stock Blog's write-up of their Q4 results or recent SEC filings:

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Posted by David Jackson on March 18, 2005 at 10:25 AM in Sector Themes, ticker: AMZN, ticker: BFLY, ticker: DIET, ticker: DSCM, ticker: EBAY, ticker: ECST, ticker: EELN, ticker: LGBT, ticker: MNST, ticker: NILE, ticker: ODMO, ticker: OSTK, ticker: PCLN, ticker: PRVD, ticker: SHOP, ticker: SPRK, ticker: TSCM | Permalink | Comments (3) | TrackBack (2)

Wednesday, March 09, 2005

With Internet IPOs ODMO and SHOP underwater, how cheap are they now?

Two recent Internet IPOs - Odimo (ticker: ODMO) and Shopping.com (ticker: SHOP) - are both trading below their IPO prices. With stronger balance sheets from the cash raised in the IPOs, where does that leave their valuations?

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Posted by David Jackson on March 9, 2005 at 09:45 AM in ticker: ODMO, ticker: SHOP | Permalink | Comments (0) | TrackBack (0)

Monday, February 14, 2005

Odimo (ODMO), grey market online watch retailer with soaring marketing costs, prices IPO at low-end of range

Luxury goods retailer Odimo (ticker: ODMO) raised $28 million in an IPO led by CIBC World Markets, but the offering priced at the low end of the range. Odimo had lowered the range to $9-10 on Friday, and the offering priced on Monday at $9. Odimo runs Diamond.com, Ashford.com and WorldofWatches.com. Here are some stats about the company's business, some quick comments, and key extracts from the S-1:

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Posted by David Jackson on February 14, 2005 at 09:51 PM in Sub-sector: E-tailing, ticker: NILE, ticker: ODMO | Permalink | Comments (0) | TrackBack (0)