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The Knot: Can This Stock Be Saved?

Since I'm getting married later this year, it seems fitting to talk about The Knot . Actually, I never realized how complex a wedding can be - as well as expensive! And, yes, I've been a frequent visitor of theknot.com.

The company is a pioneer of the online world, founded in 1996. Of course, two of the founders had recently had weddings.

The company was smart with its investment partners. The original investor was AOL. Since then, the company received money from Hummer Winblad and QVC.

The marketplace is, of course, huge. About $70 billion was spent on weddings in the U.S. last year, with $19 billion spent on wedding gift registries. In all, about 2.3 million couples get married every year. Then there are the spin-off businesses, such as honeymoons ($8 billion last year).

As for the Knot.com, the site looks great. It is easy to navigate and the content is engaging.

Financials? Well, the company is growing. In the past quarter, revenues were $6.9 million. Although, the company got a nice boost from the Weddingpages acquisition, which added revenues of $4 million. Excluding these revenues, The Know had revenue growth of 631% from the same period a year ago. Losses in the past quarter were $3.8 million.

Recently, the company exceeded 1 million registered users. Moreover, the site is averaging 22 million monthly page views.

Actually, The Knot has been aggressive with its acquisitions. The Weddingpages acquisition is the fifth acquisition so far. With valuations low and the funding environment tough, The Knot has the advantage of consolidating the industry.

The company has been creative with site promotion. For example, the company has recently announced a new contest. The winner gets a dress that has the same look as the one Jennifer Aniston had when she married Brad Pitt. It is a Lawrence Steele Grown with a price tag of about $52,000.

Earlier this year, I wrote a negative piece on The Knot. Since then, the company has sunk to a very low valuation: $44 million (of which about half is cash). But with the company carving a dominant position in its space, the valuation does look attractive at these levels.