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Stocks T / The Knot, Inc.

URL:  https://boards.fool.com/temperer-of-optimism-22310790.aspx

Subject:  Temperer of Optimism Date:  4/4/2005  11:38 PM
Author:  gstrout Number:  84 of 127

Hi Fools,

KNOT's share price is up 60% since earning report in mid-February.
Revenue breaks down to something like 31% online sales, 27% publishing, 28% local advertising revenue and 33% national revenue.
Most of its customers last less than a year, something Liu is trying to remedy by acquisitions into baby site, GreatBoyFriends to establish a broader range to hold customers. Revenue rose 13% but operating expenses rose 5 million. KNOT is still in a lawsuit with WeddingChannel, which require legal fees.

Looking ahead, if KNOT does well they may earn about 23 cents after-tax as the best case. Using ValuePro's free valuation model with 15 years and 20% growth give a valuation around $6.50. Interestingly Comcast owns a real lot of KNOT, which means if they start selling... then what?

Knot seems like a good long term company. However, you won't get wealthy overpaying for quality.

-g
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