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One of the fascinating things about this market is the opportunity for free advertising, especially word of mouth. Consider a bride who registers with The Knot's gift registry. For every one of those registrations, The Knot can depend upon 100-400 customers (depending on how big the wedding party is). It's automatic. Where are you registered? The Knot. We're registered at the Knot. You can shop for us at the Knot. You can buy us something at the Knot. You have to visit the Knot.

And people will do it. Really, it's amazing! Our target market is very focused--the engaged couple--but once that target market is reached, from a marketing standpoint you have actually reached 100 times as many people, or more.


Taylor
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Mucho thanks to Taylor for linked articles. Have returned from vacations to see KNOT still fighting to get above $1, but remain holding, watching and fingercrossing (thus forgive the long post). Most unfortunate that news / wall st. analysis nearly nonexistant now. For example, trying to find info. on weddingpages suit / mediation really tough - even law sites / NY state court home pages reveal nothing. Also, we both know no doubt that SEC filings show low activity - Two largest institutional holders still remain Guardian Trust and Special Sitatuions funds run by Austin Marxe / David Greenhouse (alas, no Peter Lynch or Tom Marsico, *sigh*). GT owned 1.124 mil. shares at 6/30/00 but dropped to 1.111 mil. at 9/30 - had "knot" seen new sec filings. Marxe / Greenhouse filed an updated 13g sec form 11/21/00. Director John Link filed to buy 5000 shares on 11/21, and co-founder Micheal Wolfson filed to sell 35k shs. on 11/7. Several sites (I referenced nasdaq's home site) list 12 institutional holders (what!? they didn't count us?) - 1,815 mil. shares at 12.42% shares outstanding. With a total of over 14 mil. outstanding shares, the sales racks are still stocked. Apparently KNOT gained one new buyer - Merrill Lynch, who risked their lives, limbs, and careers and bought 1100 shs. At least I can smile knowing I hold more shares than Merrill. The business2.com article makes great point of holding onto customers after the wedding (and not just relying on remarriages!?) - a natural growth strategy later (I'm seeing a similar strategy with one of my holdings, teen retailer Wet Seal, who is reaching out to pre-teen girls with recent Zutopia purchase, and holding to them in college / postgrad years with arden B, a rival of bebe.).
Did read recent Barrons burn list with KNOT at 13 mos. - if (when!) KNOT holds on till profitability, we can pat ourselves on the heads for being there early. Life is a risk, so an occasional one taken, like here, might be worth it. And though have been putting cash right now into retailers like Tiffany and techs like Scientific Atlanta and Nortel, KNOT will stay a holding and likely to buy more soon if mkt. stays unstable and OTHER e-plays go under and keep the sector beaten down (and that's REALLY likely). It's knot just reaching for the profit, but the growing customer base and brand name. Keep the word spreading about KNOT! Hang tough.


gp
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hey gp,

thanks for all the research! Found yet another article I haven't seen before, about a year old but not bad:

http://cbs.marketwatch.com/archive/20000214/news/current/analyst.htx?dist=pf

My cousin is getting married this year. I asked his fiancee if she was using the internet to help plan the wedding, and she said she went to the Knot every day! (I didn't mention any specific website, she brought it up herself).

I bet Liu is kicking himself for not buying the domain name "weddings.com." Even if you don't use the name for your business, a lot of people will type that in and go where it takes them. At a minimum, you can keep your competitors from using it. I like that he doesn't waste money, but that wouldn't have been a waste, in my opinion.

trying to find info. on weddingpages suit / mediation really tough - even law sites / NY state court home pages reveal nothing.

I've been trying to find out some information on the lawsuit, too, no luck. I assume they are still in mediation. The Alliance deadline has come and gone and the franchisees are still on the website. You can get a "weddingpages" planner on the website. Hopefully they are working it out, mediation is a good sign in my opinion.

if (when!) KNOT holds on till profitability, we can pat ourselves on the heads for being there early. Life is a risk, so an occasional one taken, like here, might be worth it.

totally agree, I see the Knot as a 100-bagger from here(around $80) if we don't go bankrupt first. I think we'll make it, but if we don't, c'est la vie. Good luck with your investments!


Taylor
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Thanks, Taylor, for the info. I definitely agree on KNOT's huge potential. Barring a serious problem I'm definitely going to add more, likely late this week or next, especially at these prices - if ALL works out, can see the 100-bagger when buying more this cheap. I'd presume David and Carley know about the real threat of delisting - and they clearly know about keeping budgets tight. Will be looking forward to later news, more inside trades, and especially if (any) more institutions will take the plunge again. I know I already have, and glad to do so. Good luck!


gp
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