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2014-10-04

Rightside dot Wrongside? Further Downside For New gTLD Registry?

".... There could be further downside. Based on nTLDstats, it appears that the [new] gTLDs that Rightside owns are not marketable with its 79k domains year-to-date. The company could potentially continue to generate negative EBITDA as aftermarket services revenue decline, and I continue to believe that this is a stock that is misunderstood and is a short candidate." source: SeekingAlpha
Domain Mondo previously reported on the "take down" of  new gTLD domain name registry Rightside [trading under the symbol NAME] by the Seeking Alpha financial writer known as Thunder Capital Management [TCM]--see Domain Mondo post: New gTLD Registry Rightside, Rename It Wrongside?

Now, TCM has done it again in a Seeking Alpha post published yesterday: Rightside: The Sky Is Falling Down - Rightside Group, Ltd. (NASDAQ:NAME) | Seeking Alpha: Summary:
  • While projecting 1500% growth in gTLD domains, Rightside may still default on its term loan in 2016.
  • NAME has only 79k gTLD domains and growth has been near zero.
  • NAME only has a 3% market share in the gTLD registry industry. NAME's gTLDs are esoteric like *.ninja.
  • Management believes it will be breakeven in Q4 2014 due to the monetization of the gTLDs.
  • The gTLD initiative has not ramped and will continue to be a short with at least 30% downside.
Read the full Seeking Alpha post here. TCM's analysis includes many revealing charts and other information, much of which confirms many previous postings here on Domain Mondo, including this past week: