VeriSign, Inc. (NASDAQ:VRSN)
CAPS Rating:
The Company operates intelligent infrastructure services that enable and protect billions of interactions every day across the world's voice and data networks.
The Company operates intelligent infrastructure services that enable and protect billions of interactions every day across the world's voice and data networks.
Recs
VeriSign makes 80% of its revenue from domain names. This is a monopoly that will not last forever - once this monopoly is broken VRSN is history.Additionally, their numbers are horrible. Their EPS is going from $1.70 to $0.18 which will raise its P/E ratio from 18 to over 170!I am sorry if you are long this stock! This stock is headed to $12-15 a share (and at that price it will STILL be overpriced!)The analysts have the end of year EPS at $1.07. So far this year they are at .22 cents for 6 months and the only reason they made money Q1 was because they sold off assets - otherwise they would have had a loss then as well. The trailing 12 months has them at (0.176 cents per share all four quarters combined! Take a look at the financials) They wont even get close to their mark by year end, even if they hit the rest of their estimates, which they wont.This company is dying - why do you think their entire upper management bailed?