>>I believe in the plans and believe the company when they say there's a lot going on that just hasn't completed yet.<<
I had the opportunity to listen in on the Investors' Forum that Net Shepherd hosted this afternoon. Before I say anything else about it, I would wholeheartedly recommend other companies follow their lead and host similar discussions with their shareholders. It sure can cut through a mess of rumours and misinformation we hear about a company and their plans, or partnerships etc. So, my heartfelt thank you to the brass at NSI for doing this - it was much appreciated!!
Now, here is what I felt are the highlights of the session.
Acceptance testing of their new system could start in as little as 3 days from now!
There definitely is a bright light at the end of the tunnel. This is the system that will open the future for NSI. They have been working on perfecting this for quite awhile now, and it is getting very close.
The Acceptance Test stage of the system will occur in September.
The new system will be fully operational and open for business in just over 30 days. Translation - they will be open for business and pulling in clients and cash!
The revenues from their investments in new technology will start flowing in October
So the 3rd quarter will be a net drain on cash reserves. There is approximately $2.1 million in cash on hand, and NSI expects to have this new system operational and generating revenue in about 30 days. This means that they will still retain their positive cash position. So, basically we will end up with a profitable business with a new system (with no known competition), and a growing revenue stream. So, in my opinion this is money that will have been well invested. I want to emphasize that the money they have invested is minimal in comparison to what other Web related companies have spent, and as a result, these companies have no hope of seeing an operating profit for many years to come.
There are approximately 12 signed contracts and/or letters of intent, or very firm prospects in the queue.
During the time that NSI has been working on building their new system, they have been busy generating contracts. These contracts are based on having an operational system in place (remember - 30 days away). So, my concern about no news on revenue generating contracts has lifted considerably. I know that these contracts are dependant upon having the system working well and getting through the acceptance test process, but hey - this is no different than what other businesses have to deal with each day.
The potential market for their Answers.com and Business Intelligence IPO's is staggering.
They only need a small fraction of potential market (it's billions folks ) to be a roaring success. Remember, that they already have proved that they can do searches 10 times faster, 10 times cheaper, with a higher accuracy than traditional searches can - and they do not know of any other firm that is doing what they are doing. So the advantage of being the first into a market seems to be theirs for the taking.
There are three possible routes to take NSI to NASDAQ. Two of which could happen relatively soon.
Three NASDAQ listed companies have approached them to merge
with them. NSI will not do this unless they get what they consider as a fair valuation for their company. They could be acquired by another firm, or NSI could acquire a private company and the combination of the two could qualify them for NASDAQ. Now, what struck me is that one of these scenarios could happen at any time. I believe that the company is vigorously exploring these options. I can also see how this could create a stir if the system is up and running, many of the 12 potential customers are activated, and then NSI gets to NASDAQ. The share appreciation would be, shall we say . . . aggressive!
Once again, I belive that this was a very useful and informational session. I applaud the company for doing this. I can tell you that at times over the summer I was frustrated at the lack of news, but I always felt good about their future and the potential before them. But now . . . I have some of the old enthusiasm back.
If you happened to miss the forum, you can go to the Net Shepherd Website and you can listen to it there. I highly recommend it. Here is the URL
netshepherd.com
Crazy Canuk |
