agm and the recent dip

After AGM the stock has been hit pretty hard, in fact its almost back at the March lows.

"Expect H1 09 revenue to show modest growth over H1 08
Expect H1 09 EBIT to be down on H1 08"

So revenue is still going to show modest growth over H1 08, though earnings down. Yet at H108 the share price was almost double that it was right now? I guess back then the share price was hyper-inflated on unrealised growth!! Now its come back crashing down to earth. Still being hit from ASX200 heading south and takeup of options.

"Melbourne IT’s NUM has fallen by 1.6% to 5.77m as at end April 2009
Reseller partners struggling in market conditions
2009 First Half
Competitors offering unsustainably low prices for domains and hosting – depressing margins"

Losing some revenue from their "fundamental" business. But they still have the large enterprise clients, winning hosting contracts, and in a very strong position to ride out the downturn. I feel this company will rebound well in H2 if economic conditions improve as expected. Huge potential when generic Top-Level Domain changes come in next year, should tie in well with their recent US VeriSign Digital Brand Management purchase. Would be nice if Advantate made a small profit if advertising picks up.

Does higher AU dollar really hurt his company much? I saw that they do have a number of hedges against forex. I would think they would just use their US earnings to pay off their ~$50M US debt. Would be good if someone could elaborate on this side of things.

I'd love to hear some comments, I'm deciding whether to increase my holdings or not while price is down - is this company a little oversold at the moment? Would be nice to get a few replies even though not many seem to follow this stock!