Interesting12 Sep 2017 18:07
courtesy of GHF on Advfn;
Having waded through 100's of useless posts on both MMX threads, thought it worthwhile to post an update that may assist those that look at the fundamentals of a company rather than speculate with their student loans that this will be acquired for 18p.
Due to the strategic review house broker finnCap required to withdraw forecasts & target price for the shares.They however issued a small summary today concerning today's positive news on premium domain sales & summary of recent news, which is bullish in tone.
Today MMX has disclosed that .vip premium inventory bookings in China have reached $3.4m. We estimate this represents c.50% of the comparable figure from last year; however, this been achieved in less than half the time (three months, versus eight in FY16).
In our view, this achievement is a result of two key factors; management has managed the supply of new premium inventory (hence creating scarcity value); and .vip's brand strength has not faded one year on from launch.
This news, together with July's update (.vip: 75% renewal rate) provides compelling evidence that the domain's status within the investment community is exceptionally strong, which in turn is an excellent foundation for broader adoption with new user groups eg SMEs – an opportunity that has been enhanced thanks to recent licensing approval in Beijing (22m inhabitants).
Encouragingly, there is evidence this adoption is already taking place – with China's leading search engine (Baidu.com) recognising c.189,000 different .vip sites.
In July MMX updated the market that .vip has been renewing at 75%. We reiterate that is comparable with industry leader Verisign (2Q17: 74%). Phrased alternatively, we estimate that .vip's churn is c.30-40% lower than the new gTLDs industry as a whole – either way, renewal demand appears exceptionally robust."