First, let's get past the US election. I understand it's newsworthy and everyone worldwide has an interest but we need to focus on NETP on this board. Please no comments to this statement, let's just get back on track.
On 11/29/00 2:36 pm Msg: 18056 of 18199 Victor wrote:
".....If they achieve profitability in 4Q 2001 they will have $75-85 million cash left.
NETP is a takeover target: apart from that it can grow by acquisition or merger. (Its policy is to grow by acquisition of technology or other companies). Other companies are also in a bad way, some of them have no cash, some will never be able to IPO, so if NETP wishes, it can pick up some bargains. For example Webtaggers owns proprietary software and NETP is its largest customer and pays it $500,000 for a licence. Webtaggers has run out of cash and is disbanding and trying to sell its software. NETP could probably pick it up for about $1 million, in effect buying the company for that price."
Subsequent to this post several people have challenged the cash position. Anyone know with the high degree of certainty what the cash position is at last quarters end or even today? Yahoo says they have $67 million in cash, or $2.50 per share. Am I missing something or is the stock price currently at $2.50? To me this means I paid $.25 for my stock as I picked it up at $2.75. I remember in the early 90's when a $10,000 Dell investment would have returned over $1,000,000 today. NETP is no DELL however, NETP has the best personalization technology and more patents then anyone.
I read on LocalBusiness.com that Dryken Technologies competed directly with WebTaggers. Dryken from what I gather has strong technology. Apparently WebTagger's only client was NETP, which means that acquiring WebTagger's client base provides no immediate impact to revenues although it would give them excellent technology and 15 patents. An acquistion here would prevent the technology from going to a competitor.
I hope they are using their strong cash position at this time and are scooping up technology on the cheap.
I would appreciate any comments on possible acquistions or mergers which make sense. One possible way to get this stock up is for those of you working for large companies to help NETP get into your IT and/or marketing departments and sell your management on their technology.
You have a vested interest in their success. I'm sure NETP will pay you a finders fee if you can get them in front of your management.
The fact that Webtaggers has no customers apart from NETP may indicate that (a) NETP made a poor buy or (b) that Webtaggers is poor at marketing.
However, let us assume that the Webtaggers technology is worthwhile. Your question about its value to NETP comes down to the price. NETP is paying $500,000 for a licence. Presumably, NETP wants Webtaggers to continue with enough staff in order to fulfil its contract to NETP and for the technology to finish up in the hands of a company that will continue to give NETP access to it. Otherwsie NETP has to find an alternative. (It may have already delayed the launch of the NETP "heads up" product").
I would guess that a buy-out price of $500,000 to $1 million would be a good deal for NETP. Any price after that and NETP would have to feel that it could generate sales of the Webtaggers product from its own customer base or a new marketing effort - alternatively NETP would want to take Webtaggers off the market so that NETP could use it exclusively.