Direct navigation company Marchex has been downgraded by JMP Securities analyst William Morrison.
Marchex (NASDAQ: MCHX) is the largest publicly traded direct navigation firm. The company’s stock was downgraded by JMP Securities analyst William Morrison, who cited weaknesses in the company’s direct navigation business. Morrison sees the weaknesses continuing through the first half of 2008.
This isn’t an indication that direct navigation as a business is weak, but more an indication of poor execution by Marchex. As one reader commented on my earlier story about Marchex’s trademark woes,
Poor execution below for shareholders…
Sites they developed using Openlist are not even indexed in search engines yet. Not even sites from several months ago in the beta launch. Below are several sites not even in google. There are many more examples.
Just go to google and type in the name (www.XXXXXX). Nothing indexed. They may not be in other engines either. Not even myzip.com is in google, their “gateway†site to zip codes. This is poor execution and lost revenue opportunities. This is not rocket science. Being an investor, I may take a few minutes to submit them myself…
www.myzip.com
www.restaurantonline.com
www.newyorkbagels.com
www.dimsum.net
www.chicagoluxuryhotels.com
www.shanghaihotel.com
www.bostonmotels.com
Marchex has a number of neglected assets, such as GoClick. It has the right assets but isn’t capitalizing on them effectively.
Derek says
Hit a new low today. Tempting, but trying to catch a falling knife is never smart.
Daily Domainer says
This analyst’s recommendation comes a bit late because Marchex shares have been falling ever since they reached their peak of $26.29 per share in January 2006. We will see how his predictions play out over the coming year.
Editor says
Analysts always come out with recommendations after the news has already broken 🙂