...their business model has changed. They're not
just an IT project company anymore, and they haven't
been for a while. And as far as I can tell, the "green
bean" model, as you call it, is still quite successful
in the IT/Internet world. That's where all the
As for another offering, unless you
know something we don't, I would predict a graduated
offering similar to what we've seen in the past. It's
basic finance - when the stock is inflated, issue
Boy if SAPE is a dog, then that dog don't hunt.
Up 5 1.2 today, wow. I hope that guy covered his
And how can SAPE fall to CATP's
level. CATP missed earnings by 50%. You actually expect
SAPE to miss by that amount. You must be at odds with
the institutions, who have been holding and making
huge gains. Public at about 25 pre-split. Now it's at
about 70 post split. So from 25 to 140 in 38 months...
that's 70% per year?
I'll take that!
...with all the analogies and cheerleading you do
Scarlet hit this one on the head.
The business "model" (hire green beans, work them to
death, sell them on the culture and stock options) SAPE
has worked off for the last 8 years is dying. Jerry
is the only thing proping the price up right now.
Look for another offering by the fall as the founders
further "diversify" their holdings before the stock
revalues around EDS, CTP levels.
TPEG(Nasdaq) has its shareholder meeting on May
26, 1999 and will formally pass changing its name
from TPEG to "Internet and Technology Resources" (IATR
The below FACTS can be verified
by company PRs and/or e-mailing/calling the
As always, do your DD before investing - Good Luck
with your decision. Note: TPEG closed Friday upticking
to 2 1/4.
TPEG (IATR) Facts:
January 20, 1999, TPEG formally announced a corporate
restructuring plan to redirect its business from the movie
production industry to the internet and e-commerce
2) On February 4, 1999, TPEG announced the purchase
of an equity position in flowersandgifts.com. The
flowersandgifts.com private placement ended 5-19-99, raised $3.2M and
an IPO follows shortly. TPEG's initial investment
was 2% with an option to greatly increase it (rumor
is up to 27%). Their website can be found at:
http://www.flowersandgifts.com and Phase 2 featuring their proprietary
e-commerce engine should be opening shortly.
February 25, 1999, TPEG announced the purchase of a 4.5%
equity position in Pacific Softworks, with an option to
add an additional 4.5%. Their web site can be found
4) On March 1,
1999, TPEG announced that it will change its name to
"Internet and Technology Resources" (IATR). The name,
symbol and cusip change will go into effect shortly
after the shareholder's meeting May 26th.
April 1, 1999, TPEG announced that Pacific Softworks
filed an initial public offering (IPO) on March 26,
1999, for 800,000 units. They should begin trading on
NASDAQ under PASW within a few weeks.
6) On April
7, 1999, TPEG announced the appointment of Barry
Sandrew, Ph.D., as executive vice president and chief
technology officer. His resume can be found at
7) On April 15, 1999, TPEG announced the
commencement of the publication of a free bi-weekly newsletter
to be available on the Internet. The report, titled
"The Sandrew Letter", will be authored by TPEG's
Executive Vice President and CTO, Barry Sandrew, Ph.D., and
can be accessed on the company's interim web site at
http://www.iatresources.com (the final version of the website will open
concurrent with shareholder's meeting).
8) On April
27, 1999, TPEG announced the formation of IATR
Internet Investments (LLP) through which they intend to
raise up to $20M for additional investment in Internet
and e-commerce related companies. TPEG (soon IATR)
will be the General Partner and will own 10% of the
9) Currently, there are 9.6 million shares
outstanding (including G&J returned shares) with 6 million in
the float. TPEG also has Preferred Stock
(NASDAQ:TPEGP) and Warrants available (NASDAQ:TPEGW).
TPEG has a $5.5 million line of credit with an
institutional investor, a film library from their previous
industry valued at $8-$15 million, and wholly owns
MediaWorks International worth approximately $5
11) TPEG will be bringing in a new NY-based Investor
Relations firm shortly. Strategic Capital Consultants (SCC)
12) TPEG has assembled a capable
management team with Irwin Meyer as deal maker (Todd Sanders
is still supporting him), Ivan Berkowitz for access
to investment capital and Dr. Barry Sandrew as the
Internet-savvy technical guru.
I guess there was enough support at the low 70's
level that when a couple of 5k size buys came in
without any sell orders, th stock had to run up to get a
good price for the specialist.
Nice to see it
holding this level.
Sapient has grown revenues at 70% but earnings
grew only 50% in first quarter. For the last five
quarters, SAPE has beat estimates by one penny. Analysts
project earnings to grow 42% this year to $1.05 vs.
$0.74. In order to grow 50%, they would need to earn
$1.11 and 70% would require $1.26. Don't plan on 70%
growth (beating estimates by $0.15), especially over a
five year time frame. Your assumption that SAPE will
maintain market share may or may not be fair. Given the
presence of IBM, Andersen and a multitude of younger
companies that have recently gone public (e.g. AnswerThink,
IXL, Scient) there is plenty of competition. Much of
SAPEs growth will need to come from acquisitions which
depends somewhat on stock price. Again, many things must
go right, with low margin for error to produce the
results you suggest.