Domaine names are still Tucows' main domaine

    On May8 Tucows released it's first quarter results and they were as this blog expected.And that is chiefly because Tucows is either still making revenues from domaine names or at least telling investors that they are.This has caused the stock price to be on a roller coaster.It was trading around $120 a share in January and February and this blog believed that investors thought that they owned a  number of hardware and online advertising companies.As they gradually learned that Tucows was only in domaine names the stock price fell to $83 at the release of the quarterly report.After results had been absorbed the price fell further  to it's $80 price level.Now it does not  appear so stylish and modern but it is still buoyed by it's ample profit.
    First Quarter Highlights 
  Tucows tells shareholders that it's mobile internet service company called Ting is operating in it's eighth American town-Fullerton, California.However total Ting revenues plus revenues from domaine names has fallen since Q1 2018 by18% while net income dropped by 25%.Basic e.p.s. dropped by 26% and adjusted EBITDA by 9%.So their financial indicators all show to varying degrees that financial performance is starting to falter. 
      It is not clear how revenues are earned.For example, how much revenue is recurring and how much is one time only.It is also not clear if Ting makes any income at all it seems to have very heavy investment and little revenues coming in.But it is starting to be more clear that the growth in revenues is faltering.It is also clear that Tucows has a small capital structure with only 10.5 million shares outstanding.     

     A New CEO
   This blog has warned the CEO,Elliott Noss, to diversify out of domaine names.And that a discussion of Ting does not belong as a highlight;it is only a footnote.Tucows lost a good opportunity to buy Yellow Pages and get into the Quebec market and into online advertising.Domaine names is too specialized to count on as your only revenue source.In addition, Tucows has a very tight capital structure at 10.5 million shares.It should have raised more equity when the stock was trading at $120/share,     http://www.caissepopulaire.ca/https://www.laurelhill.com/