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Thread: Site5 Acquired by EIG
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02-05-2016, 04:58 AM #201Junior Guru Wannabe
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02-05-2016, 05:41 AM #202Newbie
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Any one using their service after this taken over thing, are they improved or gone in bad like hostgator?
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02-05-2016, 09:58 AM #203Managed VPS Experts
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02-05-2016, 10:07 AM #204Junior Guru Wannabe
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02-05-2016, 01:59 PM #2050
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02-06-2016, 12:09 PM #206Web Hosting Master
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02-06-2016, 05:51 PM #207Junior Guru
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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.0
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02-06-2016, 06:01 PM #208Web Hosting Master
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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.0
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02-06-2016, 06:12 PM #209Junior Guru
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"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.0
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02-06-2016, 06:28 PM #210Web Hosting Master
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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 .0
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02-07-2016, 01:08 PM #211Web Hosting Master
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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.0
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02-10-2016, 09:03 AM #212Junior Guru Wannabe
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02-10-2016, 09:23 AM #2130
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02-10-2016, 09:31 AM #214WHT Addict
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EIG has around 3 million paying subscribers. No, they are not worthless.
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02-10-2016, 10:36 AM #215Web Hosting Master
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Wow. Not surprised.
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.....
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.1
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02-10-2016, 05:19 PM #216WHT Addict
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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.0
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02-10-2016, 07:16 PM #217Web Hosting Master
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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.0
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02-10-2016, 07:35 PM #218Temporarily Suspended
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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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02-10-2016, 09:59 PM #219Web Host Reviewer
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Their falling stock doesn't appear to follow recent trends, FYI. It would have fallen anyway.
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