Web.com dives following Copperfield Research report

|About: Web.com Group, Inc (WEB)|By:, SA News Editor

SA contributor Copperfield Research accuses Web.com (WWWW -10.3%) of altering past financial statements ahead of a recent convertible debt offering, and thinks the company's actions could represent a violation of SEC Rule 10b-5 (covers securities fraud).

Copperfield points out Web.com's Q2 report provides a materially different accounts receivable figure for Dec. 31, 2012 than what was provided in previous statements, which in turn helped it beat quarterly estimates.

The firm also believes Web.com has been playing fast and loose with its deferred revenue add-backs, sees its declining deferred expenses as evidence organic growth is inflated (if not negative), and points out the company's CEO and CFO sold a big chunk of their shares before the convertible offering was announced.

Copperfield assigns Web.com an intrinsic value of $5.96/share, or less than 1/4 its current trading price.