Daily Stock Review
DATALINK.NET (OTC BB: NETD): The stock was down 1/8 to finish at $3 7/8.
The stock has been basing since last time running up that we had from $3
to little over $6 last May. Now we would like to give some updates and
recent developments on NETD. On June 10, phone.com, a provider of
Internet-access software for wireless devices, went IPO. In a sign of
strong demand, Phone.com's (PHCM) lead underwriter CS First Boston priced
the offering at $16, above the original estimated pricing range of $10 to
$12 a share listed in the company's earlier IPO filings. The stock opened
for trading at 33 5/8 and gained another 19 percent by the end of the
session. With volume at 8.2 million shares, Phone.com closed at 40 1/8.
Then the stock went as high as $65 within one week. For the nine months
ended March 31, PHCM lost $14 million on sales of $6.7 million with a
market cap over $1.43 billion. However, NETD lost $4.4 million on sales
of $2.1 million with a market cap less than $9.5 million. We believe NETD
is extremely undervalued in comparison to PHCM. Listing on OTCBB
definitely hurts NETD stock price. Now the company is working hard to get
listed on either NASDAQ Small Cap or AMEX Emerging company. NETD needs
private replacement or secondary offering to increase assets to meet
NASDAQ or AMEX listing requirements. We are hearing the company is
working with a major US financial institution [Paine Webber Group
(NYSE:PWJ)???] for its new round of financing. Further, Paine Webber
wanted to set up all their brokers with the NETD wireless-to-Internet
services.
On May 19, NETD, announced its Web to Wireless(TM) Auction Engine.
Internet auction sites can now provide real-time wireless alerts to over
20 million PCS phones, Pagers and PDAs in the US. Datalink.net's Web to
Wireless(TM) Auction Engine can be seamlessly integrated with existing
Internet auction sites. The company's Web to Wireless(TM) technology is
carrier, device and protocol independent, allowing the auction sites to
alert clients using PCS phones, Pagers or PDAs on any carrier without
limitation. We believe many investors may have not recognized how the
service can bring millions of revenues to NETD. Internet auction sites
grow rapidly and over 10 million people are using auction sites for
personal shopping. On June 10, NETD announced the formation of its
Enterprise Business Group. This strategic business development group is
dedicated to providing enterprise solutions for a wide range of today's
business needs by wirelessly enabling Internet, e-commerce, auction and
portal sites, and corporate Intranets. These business services have a
potential market of five million Internet sites and a growing numbers of
businesses using wireless communications. We are hearing Enterprise
Business Group is working on several major deals with Internet auction
sites. Yes, baby! eBay Inc. (NASDAQ: EBAY) could come on board.
We believe the superiority of NETD patented technologies make the company
a leader in the Internet-wireless content delivery industry that now is in
its revolutionary stage. NETD services provide real-time quotes for
stock, mutual fund, bond and future while competitors provide delayed
stock quotes only. NETD patented technologies have 1-year lead on
competitors, as well as long and growing list of user-selectable
services, according to the company. We believe the stock is ready to move
up after this consolidation. Our short-term target price is $12 to $15.
The stock is rated strong buy under $4.50.
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