TokyoMex,
Have you started buying SEEC? You mentioned a while ago that you will start accumulating SEEC on another thread (I think it was Y2K thread).
It is ready to move. Following is a brief summary of fundamental data on SEEC. Low float. Year 2000 stock. earnings over $0.75/share. Price $9.75. Just started to move up (most of the y2K stocks started to move up).
SEEC's Cash = 35mil/6.08mil shares = $5.76
SEEC's Book Value = $2.77
CASH+BOOK = $5.76+$2.77 = $8.43
SEEC's Revenues:
wsrn.com.
SEEC's Earnings:
wsrn.com.
SEEC's Debt:
wsrn.com.
SEEC's future:
Y2K (Tons of Y2K partners, $$$/line of code), EURO ($$$ are just starting to come), Legacy Systems (not too many companies doing this), Migration (more $$$)
SEEC
Zacks estimates:
SEEC Industry S&P500
Past 5 Years EPS Growth Rate (%) N/A 22.3 14.0
Current Year EPS Growth Rate (%) N/A 28.3 7.5
Next Year EPS Growth Rate (%) 69.0 34.9 6.2
Next 5 Years EPS Growth Rate (%) 60.0 31.2 7.1
P/E on Current Year EPS Estimate 17.0 35.0 24.8
SEEC INC 05/02/98
ZACKS ANALYST WATCH
MEAN HIGH LOW NUMBER MEAN CHG
FISC YR END 03/99 0.79 0.93 0.63 4 0.00
FISC YR END 03/98 0.47 0.61 0.40 4 0.00
QUARTER END 03/98 0.13 0.16 0.08 3 0.00
QUARTER END 06/98 0.13 0.16 0.10 2 0.00
NEXT 5 YR GRTH (%) 60.00 60.00 60.00 1 5.00
SEEC, Inc. (Nasdaq: SEEC)
Strong buys: 3
Moderate buys: 0
Hold: 0
Moderate sell: 0
Strong sell: 0
This quarter earnings release date:
Aug 10 or 11,1998
Revenues($):
Fourth quarter of fiscal 1998 (03/98): $4,172,000 (413% increase)
Fourth quarter of fiscal 1997 (03/97): $812,000
Third quarter of fiscal 1998 (12/97): $3,454,000 (384% increase)
Third quarter of fiscal 1997 (12/96): $713,000
First nine months in fiscal 1998: $8,243,000 (357% increase)
First nine months in fiscal 1997: $1,803,000
Revenues (% increase):
384% increase this quarter compared to the same quarter last year
357% increase in the first nine months compared to first nine months last year
Revenue growth was driven by software license and maintenance fees:
615% increase this quarter compared to the same quarter last year
708% increase in the first nine months compared to first nine months last year
Net income:
Fourth quarter of fiscal 1998 (03/98): $962,000 or $0.17/share
Fourth quarter of fiscal 1997 (03/97): ($383,000) or ($0.12)/share
Third quarter of fiscal 1998 (12/97): $672,000 or $0.13/share
Third quarter of fiscal 1997 (12/96): ($45,000) or ($0.02)/share
First nine months in fiscal 1998: $1,548,000 or $0.29/share
First nine months in fiscal 1997: ($13,000) or ($0.01)/share
Earnings surprise:
Last quarter : $0.13 (upside surprise +44%)
Earnings estimates:
Fourth quarter (03/98): $0.15
Fiscal 1998 ending 03/98: $0.42
Outstanding shares:
Third quarter (12/97): 5,336,000
Fourth quarter (03/98): 6,080,000
Float:
Fourth quarter (03/98): 4,400,000
Gross margin(%):
Third quarter of fiscal 1998 (12/97): 73%
Third quarter of fiscal 1997 (12/96): 73%
First nine months in fiscal 1998: 50%
First nine months in fiscal 1997: 51%
Notes from the January 15th conference call which clearly noted that Ravi stated prices had just been raised 40% to 70 % which should increase the margins even more.
Post Year 2000 plan:
SEEC also has a vision and a plan for post 2000. It's big time.
(info from Jan15 conference)
About SEEC:
SEEC, Inc. is an established leader in enterprise solutions for PC-based maintenance and redevelopment of COBOL and other legacy applications. Its suite of tools provides automated, cost-effective, integrated solutions for maintaining, enhancing and redeveloping host-based systems and, when combined with the Company's Smart Change Factory methodology, provides a process for ensuring that legacy programs can recognize and process 21st century dates. SEEC's products currently support the major programming languages that account for 94 percent of the world's legacy applications, as well as the key databases that represent 90 percent of legacy information, and new support is always being added in response to the market's demand. SEEC's tools are helping government agencies, utilities, manufacturing companies and financial and educational institutions achieve significant savings while extending the life-span and value of business-critical legacy applications.
Growth prospects for SEEC:
Ravi Koka, SEEC's president and chief executive officer, stated, ''As
more of SEEC's clients and solution partners move toward the latter
phases of the year 2000 process, we are seeing an increased demand for
our renovation and testing technology. We expect that these trends will intensify through calendar 1998, as many companies in the U.S. and Europe, and the Federal and state governments, finally begin to attack the year 2000 problem in earnest. With SEEC's accurate year 2000 solution, the Company is well-positioned to capitalize on the coming opportunities, through direct sales to end-users and government agencies in the U.S. and Europe, and through our partnerships with third-party service providers serving both domestic and international markets.''
Gross margin percentages improved to 73% for both the third quarter and the first nine months of fiscal 1998, compared to 50% and 51% in the same periods of fiscal 1997, due to the growth in software license and maintenance fee revenues. These revenues, which produce higher gross margins than professional services revenues, comprised in excess of 80% of total revenues in the fiscal 1998 periods, compared to 55% and 47% in the third quarter and first nine months of fiscal 1997, respectively.
Earnings forecast:
SEEC's CFO, Rick Goldbach, has already told Reuters that he is "comfortable with the analyst earnings estimate for the fourth quarter of $.14 per share." Reuters put it on the wires from the Cruttenden Roth Growth Stock Conference on March 3, 1998. That certainly gives SEEC good visibility for the current quarter (fiscal fourth quarter). The conference call will give us another good look at the outstanding prospects for the future. By the way, Wainwright's estimate for the quarter is "only" $.11 so I double checked with SEEC to make sure the $.14 was not a misquote by Reuters. I was assured that $.14 was accurately quoted and it is the estimate made by UBS Securities when they issued their BUY Report recently.
The current disconnect of the stock's price from the company's performance confirms the inefficient market theory and represents a great opportunity for those who understand and believe in this company's future. The drop in the stock price is probably from the concerns from other tool vendors such as PTUS, VIAS, and TSRI. SEEC has certainly better tools & margins and has not preannounced any negative news. Increase in the outstanding shares has created the negative sentiment but SEEC is sitting on that additional $20,000,000 cash and the people who bought it at $20.00/share thought it is a good buy at that price (see the SEEC's press release below for more details). Because of the small float the decline was steep but with this quarter's earnings (SEEC will meet or beat IMHO) the rise will be sharp also.
News release in Feb 1998 regarding additional shares issued in Feb 1998:
PITTSBURGH, Feb. 13 /PRNewswire/ -- Today SEEC, Inc. (Nasdaq: SEEC - news) announced the commencement of a public offering of 1,310,000 shares of common stock at $20.00 per share. Of the total offering, 1,030,000 shares will be newly issued by the Company and 280,000 shares will be sold by selling shareholders. The proceeds of the offering will be used to develop the Company's international sales and marketing efforts, expand its domestic sales and marketing efforts, establish additional facilities, hire additional personnel, increase research and development for its enterprise solutions, increase capital expenditures and for working capital and other general corporate purposes. In addition, the Company may use a portion of the proceeds to develop or acquire businesses, products or technologies complementary to its current business.
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