WEB:ASE
Good Evening Lola,
This is my first post on this thread. I have not posted here before, because I seem to have been specializing in companies who have been spending their time building their infrastructure rather than promoting themselves to the marketplace. However, after what has transpired over the past two days with one of the stocks I hold, a few of the people who post here regularly suggested that I present it to this momentum thread.
Over the past two days, WEB:ASE has run from a low of $2.30 to its close today of $3.00. (plus 30%). The average daily volume for the previous 20 trading days has only been 24,000 shares. It's share volume yesterday was over 90,000 shares traded, and today it was over 170,000 shares! As a result, I believe that this stock that has definitely gained momentum over the past two days.
I first bought into this stock in the Spring at $4.40 per share. Immediately after I got in, the stock dropped in price and has drifted lower ever since. The reason for the drop is that the company decided to change their business model to focus on much higher margin business which is in a market niche where they have has no real competition. As a result, they decided to turn down revenue contracts while they focused on building their new company. This business decision obviously did not instill a sense of excitement amoungst the general investment community - hence the slow drop in share price.
Thankfully, they have just recently completed the building phase, and I believe that they are ready to start announcing some of the "up to 12 signed revenue contracts or letters of intent" their President stated they had. He mentioned this in an Investors' Forum discussion they held awhile ago. A link to this forum is on their Web Site. I also believe that what they have achieved has created a significant amount of interest in some pretty serious NASDAQ listed companies.
Bottom line is that although I started off in a negative position with this stock, I decided to really dig into what they are doing and the potential market that they are going after.
Over the past several months, I have been posting quite a bit of what I found on it on the Net Shepherd thread. I now believe that the potential before them is Blue Sky. For example: You may, or may not have heard that Dun & Bradstreet is being forced by some of their large investors to either move into the modern world and update how they maintain their data base on over 55 million companies that they have in their files. This issue was featured on CNBC. A few months ago, Bun & Bradstreet contracted NSI to do a pilot project to see how efficiently they could collect data on their behalf. D&B wanted NSI to find some specific information on approximately 10,000 selected companies. As a form of a base line measure, D&B also conducted the information gathering themselves. When they were completed, Net Shepherd proved that they were able to collect this information 10 times faster, at a 10th of the cost, and with the same or higher degree of accuracy than D&B could!
Now, I want to emphasize that information/data gathering is just one of the several potential applications that their 'Distributed Task Force' is capable of. NSI also is in the process of taking a private company they purchased from idealab! to an IPO on NASDAQ. What I found very encouraging is that when they bought this company from idealab! they paid for it with 400,000 shares of NSI. The company they are taking to an IPO is called Answers.com. Now, when I heard about this deal, I got pretty interested and I felt that there must be more to this story. So, two other investors (that I met through SI) and I flew to Calgary to interview the management of this company. The notes from this meeting are posted on the thread.
Over the past while I have spent some time pulling out the best posts from the Net Shepherd thread into one location. This way, if anyone wants to spend some time to really understand what this company is doing, then they can conduct much of their initial information gathering through the following links.
Message 11385202
Message 11418558
So, if you haven't gathered by now, I really like what this company is planning to do. So much so that I have continued to buy shares throughout the summer and even as late as today. WEB now represents a sizeable percentage of my overall portfolio. I am not trying to hype this stock, as I believe that the information speaks for itself. As I mentioned earlier, it was suggested that I present it here so that some of you could take a look.
Thanks for your time, and I hope all your investments are good ones!
Crazy Canuk |
