Demand Media (NYSE:DMD) -
Brief history: Co-founded in 2006, Demand Media is a web-based content company that owns eHow.com, cracked.com, livestrong.com, and other smaller content websites. The majority of the revenue is generated from Google AdSense advertising dollars. The other half of their business is the domain services, wholesale domain registration services and ancillary hosting services.
The Company IPO'd in the Q2 2010 at $17.00 per share. To be brief, the Company was a content farm relying on Google (NASDAQ:GOOG), and it capitalized exorbitant content expenses that no other content companies capitalized. It claimed that the content expenses have 3-5 years useful life, and it had a cohort analysis that showed articles would generate more revenue...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|