Feb

7

Ever Heard of Communicate.com (Symbol: CMNN)?

Filed Under Computer Services 

Communicate.com is a eCommerce company, which is very profitable and debt-free, that owns, develops, and manages some of the most recognizable websites such as Perfume.com, Karate.com, and Importers.com. These websites attract approximately one million visitor sessions and they generate their revenues through the sale of consumer goods, advertising, and travel products at its network sites.

They just recently announced preliminary results for the fourth quarter and fiscal year ended December 31, 2004. Revenues in the fourth quarter increased by more than 140 percent, surpassing $1.4 million, compared to revenues of $0.58 million in the fourth quarter of 2003. Pretty impressive, huh?

They have also recently announced that Karate.com, online martial arts megastore that they own, has added more than 1000 new products/skus to its catalog, doubling the number of products offered. Brands added to Karate.com include ActionFlex, Adidas, Century, Discipline, Everlast, G-Force, Golden Tiger, Human Kinetics, House Brand, Macho, Nike, ProForce and Yamazato. As per customer requests, Karate.com has also added a new ‘Karate Dojo Listing’ section, which is a directory of martial arts schools worldwide.

With zero debt, I have no doubt that Communicate.com is a very good investment.
Here’s their stock performance in the past 12 months:

I know it’s really risky investing in another dotcom company; but hey, just look at their performance in the past 12 months and their numbers in revenue. I usually don’t recommend anyone to invest in dotcom companies, but this one can be an exception.

Quote of the Day:
The use of money is all the advantage there is in having it. – Benjamin Franklin

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2 Responses to “Ever Heard of Communicate.com (Symbol: CMNN)?”

  1. Wealth Junkie on March 5th, 2005 10:44 pm

    Note 2 of their most recent 10Q filing financials says: “Revenue from the sale and lease of domain names, whose carrying values are recorded as intangible assets, consists primarily of funds earned for the transfer of rights to domain names that are currently in the Company’s control. Collectibility of revenues generated is subject to a high level of uncertainty; accordingly revenues are recognized only as received. Lease payments paid in advance are recorded as deferred revenue.”

    I have doubts about their finances. Their balance sheet has approximately $1.5 million in intangibles that the company is claiming is due to domain name sales? I’m no expert, but since a domain can be purchased for under $10, this doesn’t make sense to me.

    Yes, they posted record growth in revenue, but I haven’t read a thing about their EARNINGS. And EARNINGS are the most important thing when it comes to the long-term valuation of a stock, so much that Peter Lynch, legendary investor and former Fidelity Magellan fund manager, devoted a whole chapter to it in his book, “One Up On Wall Street”. (We discuss this in detail on our site.

  2. John Buttler on May 13th, 2006 8:03 pm

    Dot.com sites have really been picking up. I dont think people need to fdear then like the old days. Bank and VC’s where crazy back then, but now “no one” is going to give real money to a tech company unless it is doing a real service.

    I will start following these guys. I have a small portfolio of near IPO dot.com companies I always follow…. These are aleary open but I still like the sound.

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