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gnulaw (53.96)

SourceForge (LNUX) - Entire Company Parties in Chicago as LNUX Closes Near Liquidation Value

Recs

1

October 16, 2009 – Comments (10) | RELATED TICKERS: BBY , GKNT , IBM

 

SourceForge CEO flies entire Company to Chicago Q3 September 25 for their tenth Anniversary

Patty Morris (CFO): "... Q3 (ending September 30th) sales and marketing expense will increase by $1.5-$1.7M..." (Chicago Party?)

"...Our whole company is at an offsite meeting today and tomorrow. We'll have some very interesting things to share with you in the near future!.." 2:13 PM Sep 24th from web 

RT @thinkgeek: In true form, we're closing out stay in Chicago with a tower o' cake (incl. brain): (not Charm City) 9:23 AM Sep 25th from HootSuite..." Source: Twitter SourceForge .

 

While SourceForge parties with the shareholder assets to whom the Officers, Directors, and employees legally report to, this is the Management Team and the Board of Directors whom have negligently allowed SourceForge (NASDAQ:LNUX) to close near its liquidation value today (see Table I.)

SourceForge reports Q3 ending September 30 on November 4th after the closing bell at 5:00 PM ET after reporting increasing losses for Q2 ending June 30th.  

 

/s/chaosUnplugged, Non-Insider Shareholder Value Activist

(Currently ranked #1 +201.64% on Motley Fool with Red Hat pick made 11/08)  

 

Table I. LNUX Liquidation Value 

 

cash $40,000,000.00

sourceforge.net $12,432,657.00

slashdot.org $1,279,229.00

ohloh.net $166,676.00

freshmeat.net $186,808.00

thinkgeek.com $1,034,986.00

Total $55,100,356.00

Shares outstanding 60,000,000

*LNUX Liquidation Value $0.92** based on Stock Close $1.30 2009-October-16

**Note:  This valuation is based on a value of $1,034,986 for ThinkGeek.com. ThinkGeek is currently at an annual run rate of ~$40M in revenues with impressive growth. If ThinkGeek were sold for only $24,000,000 which is absurd LNUX's liquidation value would be $1.30 or exactly what it closed at today, October 16, 2009...not to mention what ThinkGeek (NASDAQ:G33K) would be worth with an obvious IPO. Obvious to everyone except SourceForge management and its Board of Directors. It is obvious what needs to be done.

website valuations: valuatemysite.com

 

 

10 Comments – Post Your Own

#1) On October 18, 2009 at 6:43 PM, gnulaw (53.96) wrote:

Footnotes:

 

 1. On 7/30/2009 SourceForge stated

About SourceForge, Inc."... SourceForge's network of web sites serves 35 million unique visitors each month* and includes: SourceForge.net, Slashdot, ThinkGeek, Ohloh.net, fossfor.us and freshmeat.net... (*Source: Google Analytics, Coremetrics and Omniture, June 2009)..."

2. On October 15th SourceForge stated:

 About SourceForge, Inc. "...SourceForge's network of web sites serves 38.9 million unique visitors each month* and includes: SourceForge.net, Slashdot, ThinkGeek, Ohloh.net, fossfor.us and freshmeat.net...(*Source: Google Analytics, and Omniture, September, 2009)..."

This implies that there was an increase of ~3.9 million unique visitors in <= 90 days.

3. Historically SourceForge would have released Q3 numbers on October 29th after the closing bell. (not Nov. 4th, six days later)??

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#2) On October 19, 2009 at 7:46 PM, gnulaw (53.96) wrote:

Footnotes:

 

4. Alexa.com Top Open Source Websites

 

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#3) On October 20, 2009 at 6:39 PM, gnulaw (53.96) wrote:

Footnotes:

 

5. Google Profits up 27% in Q3

6. Yahoo Profits Soar even as Sales Drop

SourceForge management will accordingly have no excuses when they [finally] announce Q3 numbers November 4th and conversely will deserve all the credit if there is a revenue/earnings surprise.

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#4) On October 20, 2009 at 7:11 PM, gnulaw (53.96) wrote:

Footnotes:

 

7. Red Hat passes Microsoft's stock price, now what?

"...Not since the heady days of the dotcom boom has the share market for an open source company’s stock been brighter.

As of the last Nasdaq trade on October 19, 2009, Red Hat's share price stood at $28.46 with the mighty Microsoft in its shadow at $26.36..." source: C I O

Open Source takes center stage... 

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#5) On October 21, 2009 at 7:46 PM, gnulaw (53.96) wrote:

Footnotes:

 

8. Internet Advertising Appears to Begin its Comeback

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#6) On October 23, 2009 at 5:35 PM, gnulaw (53.96) wrote:

Footnotes:

 

 

9. Amazon.com Breaks Dot-Com Record as Profit Beats

    source: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ay_0eQaPKWwU

 

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#7) On October 23, 2009 at 5:43 PM, gnulaw (53.96) wrote:

Footnotes:

 

10. As open source surges, Microsoft admits Linux threat 

     Source: http://www.desktoplinux.com/news/NS4295534311.html

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#8) On November 14, 2009 at 11:16 AM, gnulaw (53.96) wrote:

Of course, each of the above Geeknet http://www.geek.net website properties' values can be put into perspective as to their proper valuation just as with ThinkGeek (above) i.e. ohloh.net is showing a valuation of $166,676.00, however they were acquired in last May for $2.6 Million and Geeknet inherited the two Founders, both former Microsoft software developers, Jason Allen and Scott Collison. Scott is now Geeknet's "Chief Product Officer and Head of Corporate Development" and Jason is Vice President of Engineering of Geeknet**....so one can plainly see that Geeknet (LNUX) continues to trade below liquidation value. 

 

* Ohloh Acquisition

1. Can Ohloh bring back Sourceforge mojo?

http://blogs.zdnet.com/open-source/?p=4284

2. Behind the scenes on SourceForge's acquisition of Ohloh 

http://news.cnet.com/8301-13505_3-10252312-16.html?part=rss&subj=news&tag=2547-1_3-0-20

3. SourceForge wants to be collaboration powerhouse, buys Ohloh

http://arstechnica.com/open-source/news/2009/05/sourceforge-acquires-foss-code-metric-web-site-ohloh.ars

 

** Source: http://geek.net/about/management

 

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#9) On November 14, 2009 at 11:23 AM, gnulaw (53.96) wrote:

[SourceForge to Geek.net Link Updates]

 

While SourceForge parties with the shareholder assets to whom the Officers, Directors, and employees legally report to, this is the Management Team and the Board of Directors whom have negligently allowed SourceForge (NASDAQ:LNUX) to close near its liquidation value today (see Table I.)

Management Team link is now http://geek.net/about/management

Board of Directors link is now http://geek.net/about/board-of-directors

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#10) On November 16, 2009 at 6:28 PM, gnulaw (53.96) wrote:

>5. Google Profits up 27% in Q3

>6. Yahoo Profits Soar even as Sales Drop

SourceForge management will accordingly have no excuses when they [finally] announce Q3 numbers November 4th and conversely will deserve all the credit if there is a revenue/earnings surprise.

=> no excuses. 

Note: Google managed to increase profits as did Yahoo. We have "Startups Continue to Attract Funding" Source: http://www.techcrunch.com/2009/11/16/funding-evernote-outright-sezmi-millennial-media/

yet Geeknet is thrashing given their entrenched management and Board of Directors. Geeknet management claims to have strong advertising backgrounds but Media Revenues are cratering. eCommerce revenues are defying the recession, however their gross margins decreased > 30% from 20.46% for the 3 mo. ended Sep 30 2008 to 14.79% for the 3 mo. ended 2009 [and], again, significantly, the current CEO has no background/experience in retailing yet eCommerce revenues account for appx. 2/3 of Geeknet's total revenues. The shareholders accordingly can only hope that Suzanne Present has something up her sleeve...

 

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