AILP vs. THEO
For hidden internet, growth, value, & profit play all wrapped in one - please check out Translation Group's (THEO) 10K's on Edgar. The market cap is only $15 mill; revenues are $4 mill/qtr & growing; common is $5; please read on:
- THEO is a hidden internet play "The Company also offers completely integrated website design, development and hosting services through its subsidiary, Planet Access
Networks, Inc...."
- More about Planet Access from the 3Q99 10Q: "Planet's business has continued to experience substantial growth, with revenues increasing in the Current Quarter. Planet recently received a multi-million dollar contract to develop the next-generation e-commerce product comparison site for brandwise, LLC. brandwise is a newly established e-commerce comparison shopping service founded by Hearst Corp., Whirlpool Corp. and The Boston Consulting Group. The first segment of this
potentially large website went "live" on the internet on October 28, 1999."
- stock hit $10 in '97; warrants hit $7.50
- warrants are exercisable @ $6; & expire on 7/2/2000
- THEO does a wide range of tranlation services; including high-tech research agreements with universities
- Its reach is Global "... customers located in Japan, Europe and in the Americas, which include the dialects of Canadian French, Latin American Spanish, and Brazilian Portuguese . . ."
- Customers include Fortune 100 companies: ". . .Hewlett-Packard Company, Creative Labs Inc., Bay Networks, INSO Corporation, Automatic Data Processing, Inc., Fisher-Rosemont Systems, Minitab Inc., Caterpillar Inc., Oracle Corporation and Xerox"
- THEO is going to have rights to the "the Gedanken
system and the BTR system" which take tranlation to the next level & will hopefully be patented
- Lernout & Hauspie is one of THEO's principal competitors; and Mr. Morris, the new CEO, is from there
- Since Mr. Morris took over as CEO, the stock has gone from about $3 to $5 on volume of under 100,000 shs per day
- Lernout's (LHSP) market cap is close to $3 bill; & they're buying up other companies
- Their auditors have given them a "Clean, Unqualified" opinion, which is the highest you can get
- Low shares outstanding: only 2.8 mill, which gives a market cap of under $15 mill
- Cash on hand of $1.4 mill
- Almost no long term debt ($158,000)
- They've recently turned profitable, earning $.05/share in 3Q99
- In summary, THEO is a potentially explosive hidden internet play; takeover target; value play; and all-round great company with increasing revenues that just turned profitable
- Werbel-Roth, which I believe has since gone under, brought them public in '96 at $6/share, & their prospectus shows $.35/sh in profit in the latest quarter before coming public; now of course, after the acquisitions & the such, profit only $.05/sh in latest qtr |
