The End of the Internet Spells the End — of GoDaddy! (GDDY)

Among other things, GoDaddy, Inc. (NYSE:GDDY) hosts websites.

And whaddaya know…

The criminals who run the organization saw one of the biggest jumps in their stock price after earnings were announced just ten days ago.

And…

Well…if you know us, you know that we don’t stand for any claptrap.

And that’s precisely what the stock’s run-up was, in our eyes.

The chart below demonstrates beyond a jiminy that there was nothing behind the move, and that a round trip lower is a foregone contusion.

A bruising that could pocket us a 4900% profit.

But before we get there, have a gander at some numbers.

FUNDAMENTALS

These are the company’s latest —

• P/E is a wildly lopsided 37.73, though analysts see that number contracting to just 19.74 a year from now. Meaning: the stock’s price will be chopped in half, all things being equal.
• There’s no Yield on the stock, and…
• Price to Book is non-existent. Why?  Assets are worth less than liabilities.

• Yes, the company beat on both top and bottom lines on Q3 earnings, announced November 2^nd. But, directly after that, insiders sold $4 million worth of stock (in ten days)—compared to $8 million over the last half year.

And why would that be…?

Part of it, to be sure, is the overall short covering frenzy that struck the broad market over the last couple of weeks.  But more than that, the stupid money was just looking for any excuse to throw its credit card advance at a stock that was moving.

And now, to the chart—

May G-d send us victory over all the enemies of Israel, internal and external.

With kind regards,

Hugh L. O’Haynew

Follow @HughLOHaynew