The Knot Inc KNOT:NASDAQ will open lower in morning trading, after slipping to 7.68 a share, down another -0.12 cents a share or -1.54% on Thursday. It was announced the company plans to buy back about $50 Million in common stock in order to reduce dilution. The move is felt to be a tip the stock may be undervalued, according to financial sources.
In recent news, last week’s announcement that the Knot renegotiated its management and hosting of registry websites for Macy’s, becoming a link-out affiliate like many other relations is felt to be sending mixed signals to investment sources. eWN discussion with some feel there could be a short term decrease in revenue for the KNOT. “The management is trying to do whatever they can to keep positive investor confidence in the value of the stock-- as high as possible-- given the current information,” some told eWN.
Others are asking us what we’re hearing from vendors and say they are watching the movement in our reports. “The wedding business has always – and will always be a very emotional one. But at the end of the day, investors want to know there is a positive environment that is conducive to business and no obstacles that could deteriorate the value of their investments exist,” some said.
Reports from vendors say the Knot has begun a very aggressive campaign to recover some of the potential revenue losses by going after local advertisement directed to smaller businesses. Some feel the smaller market may have been neglected until now, as the ad media giant turns to them at a time of apparent need.
An eWN story that questioned the method behind some of the Knot’s information continues to raise questions from wedding services that relied on them for accuracy. “This concerns me. I am planning a major event for 2011 and have relied on figures issued by The Knot to determine marketability and probability of success. I will continue to read articles concerning this issue,” said one posting following the story.
Shane McMurray , a respected statistician and wedding industry analyst, raised questions involving the way the Knot conducts their surveys and the information results. “Neither Shane’s or theirs (The Knot) is a complete science or is 100% accurate; the findings should only be a guide, not gospel,” said sources weighing in privately.
Attempts to reach someone from the Knot to offer some insight or clarity were not immediately available at the time the story broke. Efforts to contact the management of the company remain ongoing.
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2010
Posted on 02/26/2010
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