Here are a few Pros and Cons that that I would like to highlight.
Cons
- Increased number of shares outstanding.
- Lower than current market price paid for private placement shares to Vanenburg group.
- Clickchoice is still an unproven entity
Pros
- The deal was probably struck a few days ago, before the price took off (so, a week ago the private placement price Vanenburg paid for their 8 Million shares would not have seemed like such a discounted price back then)
- Jan Baan will be the point man for this company. As a result, because of his profile Net Shepherd's road they are travelling on just got a lot smoother. Some of the reasons are . . . the potential market possibilities it opens up, the access to money, the credibility it offers and the potential for some serious analysts' coverage, etc., etc..
- Baan World businesses will be more receptive to hearing what this company has to say.
- The Answers.com ERP and CRM potential opportunities are a much more viable possibility now (Baan is one of the top ERP vendors in the world)
- The cash infusion will solve any potential cash crunch
- The access to software programmers will speed the development process. (This could be a critical point that would have held them back from capitalizing on their window of opportunity)
- A friend called me and told me that the head of Click Choice was interviewed last week. He said that "most people on the Internet would not have a clue who they are." But, my friend said that based on what they are doing he was impressed.
- The company just announced that their systems integration company will also be launched as an independent business early in 2000. Aside from their parent company, this will be the third private business they will have started next year - with talks about setting up a fourth one as well, Market Research.
In summary
The more that the story gets told, and the more that people understand just what Net Shepherd has done, and who their Chairman is, his contacts and the depth of the organization, the more success this company will see.
I am holding onto all my shares, because I believe in their business model and its potential. And to be frank, in my opinion, the Pros sure outweigh the Cons right now.
Crazy Canuk |
