Communicate.com: What's in a name?
Communicate.com Inc. (OTC: CMNN)
Vancouver, Canada
http://www.cmnn.com/
52-week low / high: $0.83 / $3.48
Shares Outstanding: 21.45 million
Market Capitalization: $53.62 million
Although the dot-com bubble burst eons ago in Internet time, many online companies are still pumping out profits albeit without the hyperbole and out-of-whack stock prices. Unlike dot-bombs Flooz.com and Pets.com, Communicate.com (OTC: CMNN) has valuable property that might bring actual profits — yes, profits — to the Vancouver-based firm.
Although the company has been overlooked by many investors because it is both based in Canada and trades over the counter, the firm owns highly valuable Internet domain names. Domain names, although their intrinsic value is difficult to assess, have been sold for extremely high prices. Beer.com went for $7 million. Porn.com was snapped up for $9.5 million. At the height of dot-com mania in 2000, AsSeenOnTv.com was purchased for $5.1 million.
Even though Communicate.com’s market cap is under $54 million, the firm owns a number of potentially lucrative domain names. Perfume.com, Body.com, Call.com, Karate.com, Brazil.com, Canadian.com and Importers.com are included among the company’s URL portfolio. The firm’s Vietnam.com domain is ranked number three at Google for the keyword Vietnam, behind Wikipedia and Lonely Planet.
Communicate.com owns more than 1,100 domain names. Recently, the domain name market has hit new highs. In 2007, Business.com was sold for $350 million and Ancestry.com was acquired for $300 million. On March 11, Clek Media announced that it bought Fund.com for $9.9 million in an all-cash transaction. Among its domain names, Perfume.com is the only website being operated (other than Communicate.com, of course).
Among factors that may help influence future earnings, Communicate.com’s CEO C. Geoffrey Hampson took the helm on June 1, 2007. Hampson was formerly CEO of PEER 1 Network Enterprises and built the company from annual revenue of approximately $250,000 to one of the largest in the industry. Chantal Iorio, the company’s vice president of finance, also joined Communicate.com on Dec. 12, 2007.
In the most recently reported financial data, Communicate.com posted revenue of $5.1 million for the nine months ended Sept. 30, compared with $5.2 million during the same period of 2006. Cost of revenue for the nine-month period rose to $3.8 million, which was even with $3.8 million a year earlier.
Note: Communicate.com Inc. (OTC: CMNN) is on the “Watch List” of Rising Star Stocks, a subscription investment newsletter from Business Financial Publishing, which also publishes SmallCapInvestor.com. As a Watch List company, Communicate.com displays many characteristics found in successful stock winners, and is being closely monitored for possible inclusion in the Rising Star Stocks portfolio at a later date.
Vancouver, Canada
http://www.cmnn.com/
52-week low / high: $0.83 / $3.48
Shares Outstanding: 21.45 million
Market Capitalization: $53.62 million
Although the dot-com bubble burst eons ago in Internet time, many online companies are still pumping out profits albeit without the hyperbole and out-of-whack stock prices. Unlike dot-bombs Flooz.com and Pets.com, Communicate.com (OTC: CMNN) has valuable property that might bring actual profits — yes, profits — to the Vancouver-based firm.
Although the company has been overlooked by many investors because it is both based in Canada and trades over the counter, the firm owns highly valuable Internet domain names. Domain names, although their intrinsic value is difficult to assess, have been sold for extremely high prices. Beer.com went for $7 million. Porn.com was snapped up for $9.5 million. At the height of dot-com mania in 2000, AsSeenOnTv.com was purchased for $5.1 million.
Even though Communicate.com’s market cap is under $54 million, the firm owns a number of potentially lucrative domain names. Perfume.com, Body.com, Call.com, Karate.com, Brazil.com, Canadian.com and Importers.com are included among the company’s URL portfolio. The firm’s Vietnam.com domain is ranked number three at Google for the keyword Vietnam, behind Wikipedia and Lonely Planet.
Communicate.com owns more than 1,100 domain names. Recently, the domain name market has hit new highs. In 2007, Business.com was sold for $350 million and Ancestry.com was acquired for $300 million. On March 11, Clek Media announced that it bought Fund.com for $9.9 million in an all-cash transaction. Among its domain names, Perfume.com is the only website being operated (other than Communicate.com, of course).
Among factors that may help influence future earnings, Communicate.com’s CEO C. Geoffrey Hampson took the helm on June 1, 2007. Hampson was formerly CEO of PEER 1 Network Enterprises and built the company from annual revenue of approximately $250,000 to one of the largest in the industry. Chantal Iorio, the company’s vice president of finance, also joined Communicate.com on Dec. 12, 2007.
In the most recently reported financial data, Communicate.com posted revenue of $5.1 million for the nine months ended Sept. 30, compared with $5.2 million during the same period of 2006. Cost of revenue for the nine-month period rose to $3.8 million, which was even with $3.8 million a year earlier.
Note: Communicate.com Inc. (OTC: CMNN) is on the “Watch List” of Rising Star Stocks, a subscription investment newsletter from Business Financial Publishing, which also publishes SmallCapInvestor.com. As a Watch List company, Communicate.com displays many characteristics found in successful stock winners, and is being closely monitored for possible inclusion in the Rising Star Stocks portfolio at a later date.
About the Author
Reporter Will Atkinson is based in SmallCapInvestor.com's Washington, D.C. bureau.
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