A very interesting post on the financial publication Barron’s today discussing VeriSign.

In touting its undervalued stock price to investors, Barron’s noted that share prices of VeriSign have underperformed, compared to the stock market, and put the blame squarely on the decision Court of Appeals of in the case of CFIT vs. VeriSign.

Barron’s Says:

“””The litigation could force a rebidding of VeriSign’s contract with ICANN. In a worst-case scenario, VeriSign could lose the business when it’s up for renewal in 2012.””

“””Much of the bad news is already priced into the stock, however. The market is assuming that VeriSign’s pricing for a dot-com domain will fall to about $4, according to a recent research note from Credit Suisse analyst Philip Winslow. That would be a 40% reduction from the current price.”””

Interesting.

So according to Barron’s, Credit Suisse and the stock market, is already assuming that this case will cause .com prices to fall back to $4 per year, per domain from its current price of $6.86 and has built this into the current price of VeriSign stock.

Keep in mind that under the no-bid contract it got from ICANN, VeriSign can raise rates 7% next year, so they want, making the price for registrations or renewals $7.34.

We told you back in June that this case was a big deal.

We also noted at the time, that the stock price of VeriSign fell in reaction to the courts ruling.

Nice to see “the street” agree that the price of .com’s have to come down.

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