I really got a lot out of this analysis. You did a great job of illuminating the financial mechanics of each operation. I have previously spent a lot of time researching this company but you helped me increase my ability to process all the data.
When I look at the financials now it's clear where all the pieces fit and…
I really got a lot out of this analysis. You did a great job of illuminating the financial mechanics of each operation. I have previously spent a lot of time researching this company but you helped me increase my ability to process all the data.
When I look at the financials now it's clear where all the pieces fit and to trace each dollar of revenue, debt, etc as well as how the acquisitions are unfolding.
"While most acquisitions done by ISC made sense on paper, the returns from acquisitions for ISC have been average at best."
Appreciate you reading it so thoroughly. Please feel free to write directly to me at fairwayresearch@gmail.com. Yes, this is a case where they have one terrific business (registries) and now that is not growing. They need to allocate all this cash, so they are buying business, which on a relative basis will always look subpar. Standalone they can decent(ish). Registries is just such as great business that any other business fades in comparison. I will give credit that management is trying to allocate the best they can, but still. I often wonder if they had done buybacks instead of acquisition would it have been better. I don't know, but it is worth thinking about.
Additional thoughts..
I really got a lot out of this analysis. You did a great job of illuminating the financial mechanics of each operation. I have previously spent a lot of time researching this company but you helped me increase my ability to process all the data.
When I look at the financials now it's clear where all the pieces fit and to trace each dollar of revenue, debt, etc as well as how the acquisitions are unfolding.
"While most acquisitions done by ISC made sense on paper, the returns from acquisitions for ISC have been average at best."
That's the crux right there
Appreciate you reading it so thoroughly. Please feel free to write directly to me at fairwayresearch@gmail.com. Yes, this is a case where they have one terrific business (registries) and now that is not growing. They need to allocate all this cash, so they are buying business, which on a relative basis will always look subpar. Standalone they can decent(ish). Registries is just such as great business that any other business fades in comparison. I will give credit that management is trying to allocate the best they can, but still. I often wonder if they had done buybacks instead of acquisition would it have been better. I don't know, but it is worth thinking about.