The Motley Fool Discussion Boards

Previous Page

Stocks T / The Knot, Inc.


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.

Copyright 1996-2022 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us