On Monday, Best Ideas Portfolio holding Ancestry.com (ACOM) announced that it has added its 2 millionth active current subscriber, alleviating concerns regarding a subscriber growth slowdown in light of shaky consumer discretionary spending. We continue to expect Ancestry.com’s subscriber growth trajectory to be robust through the end of this year and into 2013 thanks to the release and digital indexing of the 1940 US Federal Census. We also find it probable that Ancestry.com’s management remains in talks with private-equity firms for a sale of the firm. But even if talks do not amount to much, we’re content with the recent pricing action from Ancestry.com and expect the firm’s shares to continue to converge to our estimate of their fair value in the high $40s.
Disclosures: Brian Nelson has long exposure to ACOM at the time of this writing.