TheDirectory.com Inc (SEEK)

[Steel Penny]

The following is AMO.

Read a lot of postings today, both pro and con about Scott’s letter to shareholders. Many though it was just fluff and I understand the perception. But if you read it closely you will find many nuggets. Of course the first point is in the January 23rd CC Scott said he would be updating shareholders on a monthly basis. Score one for Scott. We’ve been updated for February.

We knew that SEEK had filed with the SEC. Now we know that is has been received and that an initial SEC response has been received. “ Late last week we received our first round of comments from the SEC.” And SEEK expects to respond to the comments by THIS Friday. That seems to be a reasonable timeframe all around. Scott has set another deadline and it’s got a short fuse. Maybe we’ll get notification when the response is filed and then again when the review process is completed. I think Scott is smart enough to see the transparency this will provide to the shareholders.

Scott established a timeframe for the next CC. Not a date, but “ shortly after the completion of the SEC review process and Q1 filing.” This is again something shareholders can monitor.

The big question for all shareholders is how is this going to affect share price? During the CC Scott said the TheDirectory.com site had had 6.4MM unique hits in December and up to the CC it had 7.7MM hits in January (and in the LTS over 7MM). First, having it in writing is great as it can be reliably quoted. Next, it gives us an indication of the rate of increase in views. If SEEK can increase views by 1.3MM in less than a month, it would be reasonable to extrapolate that Seek could reach 15MM views per month by the end of the year. That’s a 250% YOY increase. If you can grow at that same rate for a couple more years SEEK would be at nearly 100MM unique hits per month – and how much is that worth to a potential buyer – or Scott – or we shareholders? A $1 per share?

All this and they are going to roll out a mobile version.

Go back. Re-read the letter. Go back and listen to the CC at 1-862-902-0129 (Pass Code 85850090). There is a lot of DD available.

It’s just MO, but SEEK is getting ready to move north in the next three months. Stay long.