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  1. #201
    Quote Originally Posted by 48-14 View Post
    I doubt we would see that in our lifetime.

    EIG is a parent company, and those companies rarely fail. Their money makes money while that money makes money. If EIG were to ever claim bankruptcy, it's the difference between rich bankrupt and poor bankrupt. Rich bankrupt just means moving the money to another brand. Poor bankrupt means you're actually broke with no money. I bet within the next 3 years EIG will sell a few of their brands to recoup their losses. They have made some good moves in terms of buying...but their aftermath is starting to cause them issues.
    Thats Shocking to know! It will be bad if they go bankrupt.
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  2. #202
    Any one using their service after this taken over thing, are they improved or gone in bad like hostgator?
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  3. #203
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    Quote Originally Posted by DnHGeeks View Post
    Thats Shocking to know! It will be bad if they go bankrupt.
    Not for everyone else :p.

    - Daniel
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  4. #204
    Quote Originally Posted by TmzHosting View Post
    Not for everyone else :p.

    - Daniel
    I mean to say, if things turn out this way for web hosting companies - "They buy other companies and become bankrupt" . This is very shocking to me.

    "They" means web hosting companies not one company alone.
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  5. #205
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    Quote Originally Posted by roon2015 View Post
    Any one using their service after this taken over thing, are they improved or gone in bad like hostgator?
    They don't worth taking the risk. Why jump into a dustbin only to see if it 'smells'? Not me.
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  6. #206
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    Quote Originally Posted by MechanicWeb-shoss View Post
    They don't worth taking the risk. Why jump into a dustbin only to see if it 'smells'? Not me.
    Me neither, more so because I know things are just gonna go worse; why take the risk, when there's literally dozens and dozens of better choices?
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  7. #207
    I have been reading lately of those reports of EIG stock being worth $0.00. That is stupid, Gotham City Research is not a trusted source of research and one way to prove it is not is by claiming an acquisition based company has $0.00 valuation.

    But, EIG does seem to consistently remove value from their purchases by incompetent migration and destructive layoffs. My calculation is that Arvixe lost about 20% of its value total, with fleeing customers and refunds and this is not including the damage to the reputation and how that affects sales because that is very difficult to calculate (especially without inside information). My guess is that Site5 will go down that path of value loss. Both Arvixe and Site5 cost EIG about the same, $23 million and, if my calculations are correct and I think they are very close, that means Arvixe is now worth $18.4 Million.

    The idea is to buy, layoff who is not needed and keep who is needed, and merge with existing resources so profit per customer increases. The way to lose this goal is to lose customers. Keeping customers and even increasing profits by $.10 per customer per month would make a medium purchase worth while.

    Though they are not doing this and will continue their practice of failing when Site5 is merged, they still will not have $0.00 stock value. They may have $.75 to $1.00 per share value, a very damaging drop but not valueless.

    With their recent acquisitions of Constant Contact they could lose $200,000,000 of its value if they follow the same pattern, but I do not think they are worth "Shorting" yet until we get some good hints about how these transitions are going.
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  8. #208
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    Quote Originally Posted by SevenFourSix View Post
    I have been reading lately of those reports of EIG stock being worth $0.00. That is stupid, Gotham City Research is not a trusted source of research and one way to prove it is not is by claiming an acquisition based company has $0.00 valuation.

    But, EIG does seem to consistently remove value from their purchases by incompetent migration and destructive layoffs. My calculation is that Arvixe lost about 20% of its value total, with fleeing customers and refunds and this is not including the damage to the reputation and how that affects sales because that is very difficult to calculate (especially without inside information). My guess is that Site5 will go down that path of value loss. Both Arvixe and Site5 cost EIG about the same, $23 million and, if my calculations are correct and I think they are very close, that means Arvixe is now worth $18.4 Million.

    The idea is to buy, layoff who is not needed and keep who is needed, and merge with existing resources so profit per customer increases. The way to lose this goal is to lose customers. Keeping customers and even increasing profits by $.10 per customer per month would make a medium purchase worth while.

    Though they are not doing this and will continue their practice of failing when Site5 is merged, they still will not have $0.00 stock value. They may have $.75 to $1.00 per share value, a very damaging drop but not valueless.

    With their recent acquisitions of Constant Contact they could lose $200,000,000 of its value if they follow the same pattern, but I do not think they are worth "Shorting" yet until we get some good hints about how these transitions are going.

    The sentence I put in bold..you answered it in your opening statement.

    I don't follow EIG close enough to know their numbers, and not really interested to either, but everything you said about them, and watching them do this for almost 8 years, I personally would believe their stocks to be worthless. The money they've been putting out..there's no possible way their even recouping a third of their investments. Public opinion of them is very low, and a lot of the smaller to medium fishes in the pond have increased their profits because of EIG.

    Any other tech firm that's been acting foolish has been closing offices and reporting losses. BlackBerry reported closing a Florida office. Were just watching it slowly die. EIG does a lot of bragging, but internally, it's as stable as a bag of cats.
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  9. #209
    "Worthless" as to you, me or anyone here would not buy them, but anything with assets is never technically worthless. I knew an Ohio based company that bought up stock of worthless Dot Coms around 2001 for like 1/16th of a cent per share simply to resell file cabinets, desks, chairs (that were not stolen) and cat 5 and LPT cables or whatever else could be loaded into a truck and delivered to a discount shopping mall outside of Akron.

    The only way EIG would be completely worthless is if no one would buy any of their assets during a fire sale. But they can go really, really low.
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  10. #210
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    Quote Originally Posted by 48-14 View Post
    The sentence I put in bold..you answered it in your opening statement.

    I don't follow EIG close enough to know their numbers, and not really interested to either, but everything you said about them, and watching them do this for almost 8 years, I personally would believe their stocks to be worthless. The money they've been putting out..there's no possible way their even recouping a third of their investments. Public opinion of them is very low, and a lot of the smaller to medium fishes in the pond have increased their profits because of EIG.

    Any other tech firm that's been acting foolish has been closing offices and reporting losses. BlackBerry reported closing a Florida office. Were just watching it slowly die. EIG does a lot of bragging, but internally, it's as stable as a bag of cats.
    Out of fun I looked up some data and frankly EIG is falling apart. They spend money like they have it, but WOW.

    http://www.nasdaq.com/symbol/eigi/guru-analysis/graham

    CURRENT RATIO: [FAIL]

    The current ratio must be greater than or equal to 2. Companies that meet this criterion are typically financially secure and defensive. EIGI's current ratio of 0.28 fails the test.


    LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: [FAIL]

    For industrial companies, long-term debt must not exceed net current assets (current assets minus current liabilities). Companies that do not meet this criterion lack the financial stability that this methodology likes to see. The long-term debt for EIGI is $1,019.6 million, while the net current assets are $-344.9 million. EIGI fails this test.

    Read more: http://www.nasdaq.com/symbol/eigi/gu...#ixzz3zQgsOZSD

    and if I am rading this right.
    http://amigobulls.com/stocks/EIGI/in...ment/quarterly
    It looks like EIGI made -15.35 million last year .
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  11. #211
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    Quote Originally Posted by Silvatech View Post
    Out of fun I looked up some data and frankly EIG is falling apart. They spend money like they have it, but WOW.

    http://www.nasdaq.com/symbol/eigi/guru-analysis/graham

    CURRENT RATIO: [FAIL]

    The current ratio must be greater than or equal to 2. Companies that meet this criterion are typically financially secure and defensive. EIGI's current ratio of 0.28 fails the test.


    LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: [FAIL]

    For industrial companies, long-term debt must not exceed net current assets (current assets minus current liabilities). Companies that do not meet this criterion lack the financial stability that this methodology likes to see. The long-term debt for EIGI is $1,019.6 million, while the net current assets are $-344.9 million. EIGI fails this test.

    Read more: http://www.nasdaq.com/symbol/eigi/gu...#ixzz3zQgsOZSD

    and if I am rading this right.
    http://amigobulls.com/stocks/EIGI/in...ment/quarterly
    It looks like EIGI made -15.35 million last year .
    EIG is walking on the edge more than I imagined.
    I had a few suspicious that the hemorrhaging loss of clients wasn't as unimportant as it appeared, but I thought I was wrong - not being an accountant or having any experience at complex financial matters.
    This basically means they're going to collapse sooner or later, but I only feel compassion for their customers.
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  12. #212
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    I grabbed a screenshot of their stock (EIGI).
    Click image for larger version. 

Name:	eigscreenshot.png 
Views:	33 
Size:	28.7 KB 
ID:	33360
    It shows a one year history. Site5 was acquired at the end of June, and the summer peak was around mid July ($21.70). Since then it's declined to $7.69.
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  13. #213
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    Quote Originally Posted by bwb View Post
    When you have a 1,000,000 customers versus 50,000 versus 1,000, the scale of a problem changes dramatically.
    This is the exact reason you cannot take any risk with your customers. And this is the reason EIGs are still there.
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  14. #214
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    EIG has around 3 million paying subscribers. No, they are not worthless.
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  15. #215
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    Quote Originally Posted by Chimpie View Post
    I grabbed a screenshot of their stock (EIGI).
    Click image for larger version. 

Name:	eigscreenshot.png 
Views:	33 
Size:	28.7 KB 
ID:	33360
    It shows a one year history. Site5 was acquired at the end of June, and the summer peak was around mid July ($21.70). Since then it's declined to $7.69.
    Wow. Not surprised.

    Quote Originally Posted by Carloz View Post
    EIG has around 3 million paying subscribers. No, they are not worthless.
    True...but then look at RIM/Blackberry. At one point in time, owing a Blackberry was respectable. Now, one would not admit to ever owning one.

    Also...if they didn't play around with their customers, imagine how many paying subscribers they would have had. I think they have 60+ brands. 3 million between 60 brands is not impressive considering 2-3 of those brands collectively could have had 3 million before being acquired.

    Which then leads to.....

    Quote Originally Posted by MechanicWeb-shoss View Post
    This is the exact reason you cannot take any risk with your customers. And this is the reason EIGs are still there.
    I would say that because of EIG, it's why the smaller to medium host still exists. Every time EIG buys a host, the customer base of the other hosts goes up.
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  16. #216
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    Quote Originally Posted by 48-14 View Post
    [...]
    I would say that because of EIG, it's why the smaller to medium host still exists. Every time EIG buys a host, the customer base of the other hosts goes up.
    IMHO, it's only a fraction of their customer base who leaves ship after a buyout. Most of the people will not even recognize that their service level went down.

    Additionally, they buy strong brands which will get them lots of signups for years. Heck, we see it daily that someone at WHT wholeheartedly recommends an EIG brand. Which means that the customer base of EIG is rather growing than declining even though some frustrated EIG customers find their way to a better host.
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  17. #217
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    Quote Originally Posted by Carloz View Post
    IMHO, it's only a fraction of their customer base who leaves ship after a buyout. Most of the people will not even recognize that their service level went down.

    Additionally, they buy strong brands which will get them lots of signups for years. Heck, we see it daily that someone at WHT wholeheartedly recommends an EIG brand. Which means that the customer base of EIG is rather growing than declining even though some frustrated EIG customers find their way to a better host.
    I could somewhat agree and disagree.

    Only because they have a larger customer base does it seem like chaos, but for them it's only 0.000000000005% of this customers.

    When you analyze just one brand from social media, they could have close to 168,000 public complaints on social media...now times that by 70!!!. Some host don't even have 168,000 customers.
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  18. #218
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    Lol it's like comparing apples and oranges. From my perspective of being in this industry for over 15 years and working for hosting companies in the UK who get 200+ signups a month with zero advertising - just think about how many signups EIG brands get. The % of upset/angry customers isn't even noticeable to them.
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  19. #219
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    Their falling stock doesn't appear to follow recent trends, FYI. It would have fallen anyway.
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