ASKJ...
I typically wouldn't bring up a stock like this but since I'm holding some puts I thought I'd give it a try...LOL...
What holds this thing up???
That is a question I have been asking myself since Yahoo reported earnings and I found myself long Yahoo calls and long ASKJ puts. I closed out the YHOO class for nice gain and right now the ASKJ puts are a free ride from that trade so even if they go to zero I really don't care, but since I own them I'd like to cash them in for gains instead...LOL...
OK, This is what I come up with...
I went to ASKJ web-site and right under FAQ for investors it says that ASKJ gets part of it's revenue from "sponsorships"...
What's this???
Does this mean a donation...LOL...
Here it is...
irconnect.com
Q: How does Ask Jeeves generate revenue?
A: Ask Jeeves revenue includes revenue generated from advertising, paid placement, sponsorship and e-commerce sales on Ask.com, Teoma.com, Ask Jeeves UK, AJKids.com and Ask Jeeves Keywork Network, and revenue generated from sales of Ask Jeeves' syndication services. For further details, please see our filings with the SEC including our most recent quarterly report filed on Form 10-Q and our annual report for the year ended 2002 filed on Form 10-K, all located on the Investor Relations Web site under "SEC Filings".
Anyway, now I read in ASKJ earnings report that 69% of this qtrs revenue came from Google...
Here it is...
biz.yahoo.com
>> Revenue was up almost 73 percent, to $39.2 million from $22.7 million last year. The company's advertising partnership with Google Inc (News - Websites) ., the No. 1 Web search provider, contributed 69 percent of overall revenue. <<
Then I went to the actual earning report and I noticed that the cost of this extra revenue didn't cost ASKJ a dime...
Here it is...
biz.yahoo.com
2003 Revenue = $22,715
2003 cost of revenue = $5,516
2004 Reveune = $39,229
2004 cost of revenue = $6,070
Not bad huh???
Now my conclusion is this smells like manipulation for the Google IPO and that could happen as early as the end of the month...
EOM
Shoreco
PS
This is not a recommendation to buy or sell this stock, it was more or less my justification for holding these June puts...LOL... |
