Marchex shares down 22%

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It's possible to be rich in virtual real estate, but poor in performance. Shares of Marchex (Nasdaq: MCHX) opened 22% lower this morning, after the company posted lackluster second-quarter results and lowered its guidance for all of 2007.

http://www.fool.com/investing/general/2007/08/10/marchex-of-the-sanguine.aspx

The company extended its paid-search contract with Yahoo! (Nasdaq: YHOO) for another two years, though it's also crediting Yahoo!'s recent quality-based pricing initiatives for part of this year's projected shortcoming. Marchex also announced the purchase of call-based advertising specialist VoiceStar, and the appointment of Bill Day as the company's chief media officer.

Day's appointment should be a good one. He was CEO of New York Times' (NYSE: NYT) About.com, the guru-led resource site that may inspire some compelling content-creation initiatives at Marchex. The company has begun to unlock the value of many of its domains by populating them with more dynamic content than the old parking-page mindset. A seasoned visionary like Day should be able to pump up the properties further.