Thunder Capital
Short only, deep value, tech, mid-cap

Demand Media: Titanic Will Hit The Iceberg

I initiated my coverage of Demand Media (DMD) on February 3, 2014 with an article describing the history and current situation (Demand Media - Stay Away). On February 24, 2014, I provided a valuation analysis to indicate that the stock is a long-term short, but it does have acquisition risk from private equity firms (Demand Media Valuation Analysis)

DMD data by YCharts

Since publishing the articles, Demand Media is down 19%, while the NASDAQ Composite is up 10.5%. Demand Media as a whole had quite disappointing financials for the quarter ending 3/31/14. However, there was an unprecedented uptick in the stock price over the past two months. There are two scenarios for an uptick:

  1. Successful spin-off
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