What Is Sitestar Worth? Part 2

In February I wrote a post detailing the situation at Sitestar (SYTE). If you didn’t read it, Sitestar is a micro-cap ($4M market cap) that was taken over by a couple of activist investors this past December. Most of Sitestar’s value comes from the 42 properties they own around the Roanoke, Virginia area, but they also have a legacy dial-up ISP business and they own the domain first.com. In the last post, I valued the company on a net asset value (NAV) basis somewhere in the range of 7 cents to 9.2 cents (current share price is 5.5 cents). Steven Kiel and Jeff Moore (the two activist investors) haven’t announced their plans for the company yet, but I think some kind of liquidation is one of the more likely outcomes. If a liquidation does happen, a discounted cash flow (DCF) is probably the best way to value the company.
Continue reading “What Is Sitestar Worth? Part 2”

What Is Sitestar Worth? Part 1

I’m betting Sitestar (SYTE, $0.0465) is a familiar name to those of you who follow the microcap space. For those who don’t recognize it, I’ll do a quick catch-up. Sitestar started getting attention in 2011 when Jeff Moore (aka Ragnar Is A Pirate) began writing about them and continued updating readers up until June 2014 when he started some activism. If what I write piques your interest, I highly recommend reading through his many posts for an educational and entertaining look at his past 4.5 years of involvement in this company.
Continue reading “What Is Sitestar Worth? Part 1”