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EGAIN COMM CP Message Board

  • hd.barney hd.barney Feb 28, 2011 5:58 PM Flag

    New Long

    Are there any other longs here? I just bought in for only 1k shares and it took for 4 trading days to do it! I understand the low volume... But strong hands is a great sign.

    I'd really love to hear some other longs (and shorts) opinions about this company. As an IT guy... I work in the cloud occasionally and for the company I was previously with, eGain offers a suite of products that I see becoming more and more in demand. This IS the future of business. I'm convinced.

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    • I've forgotten when I first bought eGain but it was just after they converted the preferred shares. Think it was four or five years ago.

      Some points worth mentioning:

      1) They have flirted with bankruptcy in the past. The CEO and one of the Board members have loaned money and converted debt to equity on terms more generous than what the stock market would indicate were fair.

      2) CEO (Ash) has worked for $1 a pay period for quite some time now. I think it makes sense for him to do this but for reasons I do not completely understand very few companies do this. Ash is more ethical than me and more ethical than any CEO I've ever seen.

      3) They were a bubble stock around 2000. Imagine you already knew that. They sure did blow through a lot of capital and have massive tax loss carryforwards from that time. I think Ash was impacted by the bubble and will try to keep eGain's share price within a reasonable range in the future assuming they continue to be successful.

      4) October 2011 is a key date as Ash and Oak Hill Investments purchased close to 50% of the shares in October 2008 via a debt conversion. At the end of the three years I would expect them to issue new equity as there are tax reasons to not do it before then. This equity will (1) allow them meet the NASDAQ listing requirements and (2) allow them to comfortably pay off the debt still owed to Ash/Oak.

      That's my understanding. Don't understand their product positioning or how they match up against others at all.

    • Long here. Agree EGAIN has the hottest and newest talked about products in the cloud field. Fundamentals great also and still unknown to the rest of the market. I think the listing on nasdaq whenever that happens will send this to double digits when looking at cloud high PE stocks like CRM, RVBD, RNOW....egan also in that category with a PE of 12 ONLY x5 now for fair value, x 10+ for future value see you at $10 in 6 months or less. Look for more contracts like the previous vodafone that gave them $4 mil profit !!!