Wednesday, April 17, 2013

"Can a fancy name, or domain name, upon acquisition, directly increase the market cap of a company 1000x the trading value?"

It seems like anybody with an idea or small website can go public over the counter now a days....wait...they can, they have always been able to do so.  The stock markets and over the counter markets in particular have seen there fair share of Tech bubbles but is another one on the horizon?  Some fancy stock tickers with no earnings and a cute name continue to trade volume even when the company seems to be in shambles.  The same fancy domain names made a windfall in capital invested during our last tech run.  Could the "premium domains" be undervalued?

With "Premium Domains" selling for 1000x the face value of which one can purchase it on Godaddy.com , while it is unregistered, we here at MicroCapCompany.com are posing the question "Can a fancy name, or domain name, upon acquisition, directly increase the market cap of a company 1000x the trading value?"

Now let's get real, the only way a to increase the stock price 1000x the current trading price is for someone (demand) to put a purchase order in at 1000x the price.  But why would someone do that?

Penny Stock Companies & Micro Cap Stocks alike (as they exists today) are diverse companies; some are start-ups, some are established business, some are shell companies or vehicles, some are small companies with alot of shareholders, some are a mixture of these examples and more.  The answer is: Yes, a fancy name or domain name (in the tech world) could send a stock price through the roof.

A fancy name, tradename, domain, all fall under Intellectual Property if done right.  Claiming these trademarks or names/brands via the USPTO can be extremely lucrative.  Trademarks when registered outline your rights not only to use the marks or names, but to charge for others to use them.  Can we say revenue??  Of course this is if they are marketed correctly and there is a demand.  Now as far as the tech world, and Premium Domains, it's a little bit of a different story.

The right domain name for a website is the difference between putting your business on Main Street or in the middle of no where.  As far as SEO, and ranking on search engines, a domain name says allot   To put it simply, is someone searching "Tag Sale" more often than "Mary-Joes Tag Sale"??  If so, that domain, once established into a website, with all things being equal, generally rank higher in search; attracting more visitors.  All the pictures of Premium Domain names in this article are for sale via PushYourRank.com (an WEB blog owned by our parent company) as BRANDS!  With the right team and development plan, the eye can see the added value in the names.  This concept is not novel, many domain and website flippers commonly brand domains and target certain sectors for sale.  If a over the counter technology company where to purchase a site like TagSale.CO™ for $2,000 or say even $15,000 and it was currently trading at a $1,000,000 market cap, depending on the share price the domain purchase itself could double the size of the company.  The non-liquid nature of many penny stocks and micro cap companies allows for just one buyer to swing the price of stock up 100% and more!  It will only take one buyer in the market place to read a press release and get excited, maybe because he works from home and owns his own online store or e-commerce platform.  Today it is easier than ever to set-up a website model that generates cash quickly....can you withstand the test of time and investment is a barrier to entry for most in the tech world.  But for a micro cap company that has let's say $100,000 to invest in an Internet model, it's a pay day.

We want to know what you think about how Intellectual Property increases values or decreases values.  Please weigh in and join the conversation by leaving comments or your thoughts below.

The MicroCapCompany Team
Follow Nicholas Coriano on Twitter

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About the Author: Nicholas Coriano is a Business Consultant and Planning Guru.  He is a graduate of The University of Connecticut Business School and the John Marshall Law School in Chicago.  He has worked at Merrill Lynch, The New York Stock Exchange and as an Investor Relations Agent & Consultant to Micro Cap Companies and Penny Stocks.  He is the founder and author of The MicroCapCompany.com a blog focused on providing information and advice to Micro Cap Company Executives and Investors.  You can also find him blogging about Social Media, SEO, Web Development and Tech on PushYourRank.com

About MicroCapCompany.COM: MicroCapCompany.COM (The Blog) is a blog focused on providing articles, news and information on the micro cap sector and start-ups.  The Blog is a free service offered by Cervitude™ Investor Relations (a micro cap investor relations firm) and offers compensated research reports and business plan writing services for micro cap companies and penny stocks.  If there is a particular topic you would like to see covered on The Blog, email CervitudeNetwork@gmail.com, If you would like to advertise on The Blog, click here

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