Categorized | New gTLDs, Uncategorized

The share owners of the listed company MMX are starting to eat .horse

Posted on 03 February 2019 by Graham Haynes

MMX is the owner of .vip .work .horse amongst others including .xxx which they recently acquired from ICM. It’s getting messy at MMX (Minds and Machines) as their share price drops nearly 70% from a high of 15p.  Arguments between the bulls and bears on their share chat board is getting nasty.

http://www.lse.co.uk/ShareChat.asp?ShareTicker=MMX&share=minds+mach

What is clear, they know the machination of investing in public listed companies but have very little knowledge of domains.

None of the private shareholders can understand the fall given they are posting profits and growth. From a domainers point of view, it is abundantly clear MMX are window dressing the figures to be brought out and the underlying picture is ugly. Take dot work, not any of the investors realise they are being sold at the lowest price for a domain in the universe right now at LESS than one cent and the growth in numbers they extol can all be explained away by this. MMX is not coming clean with investors that this is their strategy, and they believe they are getting $5 – $8 a name.

It is shocking their lack of knowledge of costings. The ICANN fees of $0.25 per registration and Nominet registry fees of at least $4. Given that XYZ experienced over 90% drop rate after the giveaway period, they will never be able to recover the sunken costs of the giveaway period, in the following years at $10 -20 renewal.

1 Japanese yen 0.009 dollars

The other blind spot they all have is the broader performance of new GTLDs, they still believe its a young, nascent industry and they are waiting for greater public awareness. Instead, with a little digging, it is evident that least 80% of registrations are domain speculators, especially Chinese and they are haemorrhaging money. The public has rejected them on the whole. It’s a precarious business with little upside and a lot of risks. I’m expecting the share price to drop further as domainers abandon ship for the legacy domains. Even Uniregistry the champions of nGTLDs in their State of the Industry 2019 commented ‘.com will continue to rule supreme’.

They need to be aware the SP is a reflection of the fact if you stripped out names sold for less than a cent their overall portfolio is shrinking in numbers and furthermore the market is in steady decline and still got a way to go. Maybe the SP is a little high at 5p.

For transparency, I don’t own shares in MMX and never have worked or involved in any business with them, all opinions are my own, do your own research.

8 Comments For This Post

  1. Snoopy Says:

    In the next 5 years a lot of these registries will get bought out in a firesale situation to Affilias/Neustar etc who will strip back marketing and other costs to nothing and run it like they run .mobi or .biz.

    .Club and many others are in a similar position selling names for cents via Chinese promotions to try and prop up the otherwise falling numbers.

    All new tld that have a “lumpy” graph on ntld stats is one to avoid (i.e. sharp rises and falls where they are in a cycle of padding numbers followed by large drops). That is most of them.

    https://ntldstats.com/tld/club
    https://ntldstats.com/tld/vip

    Real registration charts are smooth, they don’t look like that.

  2. Graham Haynes Says:

    Exactly, MMX already pulled their sales team and they shut down their back end registry moving it to Nominet. Cost cutting has happened, now they will wait until they come to terms with the lower valuation of their business and then sell out. Still in fantasy land believing they can turn this around against the huge headwinds of little public interest in these extensions, Dot Horse hahaha

  3. Rick Schwartz Says:

    Ah, my very favorite worthless new GTLD!
    RIP Dead.Horse. LOL
    It died before it was born and it is still dead and the geniuses at MMX never even smelled it.

  4. Green Jobs Says:

    It’s funny to realize they use MMX.co! ?

  5. Graham Haynes Says:

    Yes! MMX.horse is available e…. ???

  6. Albert Says:

    GTLD = Good To Lose Dinero

  7. DomainBoss-RK Says:

    I am of the similar opinion as Snoopy above. Most of these TLDs are not going to survive.

  8. mike Says:

    There are the same guys that created the headlines for the end of .com, after they were kicked out of their company.

    In the trenches everyday as domainers we know there is no demand for these extensions, as investors and running computer generated scenarios the outcome might look different.

    With ICANN launching more extensions as it is a cash cow, with the auction loophole closed, call it game over when it comes to crap domains, they are a dime a dozen, anyone who creates a real company will eventually pay for the .com, there are so many good ones left for no premium fees.