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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Chadick who wrote (682)	3/5/1999 9:06:00 PM
From: Bahama	Read Replies (1) \| Respond to of 54805

Hi Fred, I'd think probably not gorilla material. At the end of the day, if you remove "internet this" and "internet that" they're just a retailer (with a pretty limited product line and no technology in the product itself). They are just a registrar. No doubt the business is growing and will continue to grow, and it's probably a pretty good investment. But the bottom line is they manage a database for a fee. I recall maybe a year ago, their stock took a hit due to fears of their once-closed market opening up to competitors. That competition hasn't materialized in any meaningful way. Maybe KING material? The number of domain names that large corporations (e.g. INTC and MSFT) register PER MONTH is roughly a couple-few dozen. Seems this would be the big growth area since a small company will only register one or 2 EVER, as will individuals. A few years down the road, when most businesses finish their internet migration and are settled in, it would seem the growth in domain name registration would turn down significantly (the growth is high now because people are frantically setting up their web presence in my opinion). Then they just sit back and take in the "rental" dues. A tidy chunk of high margin revenue no doubt, but not a gorilla-like grower. Maybe they'll even start paying a dividend and be included in the DOW<g>. Comments?