Storm Rider,
That "news" about the "cost" of the Yahoo partnership is exactly the type of misinformation out there that I was talking about. The Yahoo deal is the best thing that Overture has going for it... the fact that they have to share profits from the clickthroughs (which is really what this so-called "cost" is) is not a bad thing at all. As I said about a week ago, Overture is once again ABSURDLY undervalued and I leveraged up more than ever before when it was trading at 17. If it climbs back to even the low 20's, I am going to almost double my total profits to date (which contrary to what Donny lies about, are quite impressive). But even the low 20's are not a fair valuation. I know I sound like a broken record, but I will say it again... when all the hype, panic, and psychological swings are put aside, the only thing that truly determines where a share price will go in the long run is earnings. It doesnt matter if the economy collapses or if insiders have sold every share... if a company is increasing their profits, their share price will rise. Take a look at Overture's earnings record, look through the irrational reasoning that Google is a real threat, and you will see that this trend is not set to change much. Here is the first article I have seen that starts to point out what I have been saying from my in-the-know advertiser perspective - that Google isnt really the threat is perceived to be...
biz.yahoo.com
I am confident that more similar stories will follow as the ignorant public begins to realize what I have already - that Google, while a superb company, is not a formidable competitor with Overture strictly in the PPC arena. Just do various searches on AOL right now to see proof in action how much less value they provide to their partners. Search for something, and if you are lucky enough to even see a sponsored listing, look up how much it costs in Google's system compared to what it costs in Overtures. 9 out of 10 times if it appears at all, it will be less. |
