I just got off the phone with Ric Charron from Net Shepherd. I had a few questions that I wanted to review with him.
I asked him for an electronic copy of a document I have which discusses Net Shepherd. I recently asked for, and received, this four page overview as part of an investor's package. I feel that this 4 pager provides a pretty good executive summary of who they are, what they do, and what their potential is, etc.. I wanted to post this overview on this thread. The hard copy that I have is slightly out of date (given the recent changes to their financial status - for the better I might add).
The topics discussed are . . .
What business are we in?
What value do we provide to our customers?
What do we sell? What are the business models? and how do we make money?
What is our focus?
Who are our customers?
What is our growth potential and strategy?
What the assets of the company that leverage share value?
What is our competitive advantage?
What is Net Shepherd's financial position?
Why is Net Shepherd an attractive investment?
Well, Mr. Charron reminded me that I could find this information is on their
Web Site. Here is the link to their web site . . .
netshepherd.com
I would strongly recommend that all investors review this information if you
haven't already seen it. I feel that it will help you better understand
this company.
Another question I wanted to re-visit with him dealt with the value which is to be placed on the Answers.com purchase. I have been having a hard time rationalizing how idealab! would agree to closing the sale of Answers.com for a total of 400,000 shares in Net Shepherd without first establishing a firm dollar valuation. Mr. Charron assures me that the $7 amount discussed was a mutually agreed to valuation in the future. However, this price is not part of the sales agreement. Now, I may be slow here, but I still cannot rationalize how a company (idealab!) would be happy to see the value of their 400,000 shares at a current value of 44 % of their hoped for price.
They most assuredly are not stupid business people.
So as a result, I have to assume one of the following scenarios might be true . . .
1. idealab! basically gave away Answers.com so that would not have to incur
any more expenses for a business that they did not have the technology to
operate efficiently or at a profit (Net Shepherd does have the technology -
and because of this they feel they can make it profitable)
2. idealab! knows something about Net Shepherd's plans, and believes that
the shares that they have assumed will be worth the $7 valuation in the
relatively near term.
3. In lieu of a set price per share, idealab will receive preferred pricing
on subsequent contracts that they use Net Shepherd for with any of their
other holdings. They have stated that they can use the Net Shepherd
technology for their other businesses.
4. idealab! and Net Shepherd will be working on joint ventures where the
Answers.com business will be an integral part of those ventures. The
potential for these will be very profitable for both organizations, and
idealab! knows that this will increase Net Shepherd's share value.
5. Net Shepherd basically signed a great deal and idealabs! Mr. Gross was
snookered <ggg>
Now, I have to caution everyone that these are just my own musings. That said, my favourite one is scenario # 4.
I have read the Answers.com Press Release at least four times now, and I am convinced that there is real meat contained within that release. We just need to wait for them to fill in the names, dates, and amounts. Here is the link to a copy of the release
Message 10110579
I asked Mr. Charron a question that someone else had sent me privately. It was - "Are there any big deals that they will be able to announce this quarter?" He laughed, and said that he couldn't say. Damn, I hate it when company executives give you answers like that <ggg>.
One thing he did mention is that he feels that I misspoke in an earlier post. The post he is referring to dealt with a reference I made to Dunn & Bradstreet. I had stated that a quote from a Dunn & Bradstreet executive was one of the reasons I feel that this company was well positioned for a move. Here is what I said . . . - The Dunn & Bradstreet Exec who stated that Net Shepherd could save them millions of dollars. Mr. Charron felt that this comment could be misleading and is not reflective of our previous discussions on this topic. When he mentioned that I offered to clear up any misconception I may have created. I would like to rephrase it to now read . . . Dunn & Bradstreet is pleased with the work Net Shepherd did for them.
They are exploring ways in which the two organizations could potentially work together again in the future.
I hope that anyone who has read my posts since I joined SI recognizes that the last thing that I want to do is misquote (and therefore mislead) any reader of this thread. I have tried, and will continue to try to be responsible in my DD, and commentary.
In summary, I eagerly look forward to more Press Releases from this company. I do stand by my belief that the next few releases will be significant ones, and they will provide us all with a clear idea of where this company is headed.
Crazy Canuk
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