I was quite surprised that Thom Calandra's article at Marketwatch.com, which also used my quote on THCG, sent that stock nearly up 100% on nearly 1000% of normal volume over two days. He only used a small excerpt from my very long email so it was taken a bit out of context. That's why I'm quite dismayed to see short-term traders and those who haven't looked at the company's financials drive this stock up indiscriminately. Scrutinize the underlying numbers rather than buy this as a concept stock. I'm not saying this is a great or bad investment, I merely sent an email to Thom with all the VC stocks that he did not mention in his earlier articles. I will admit that the article conveyed my enthusiasm for webmethods, which I believe is a great company, though by the time of the IPO, any retail investors will probably get reamed buying in the aftermarket. But that's another story, I'll try to post with my thoughts on that company in its SI forum later (and do your own due diligence regarding this company).
Although I formally cover a few Net VC stocks among the Internet stocks I track, THCG is not one of them. [disclosure: the VC stocks I've had any position in this year are Softbank (which also owns 20% of my employer) and Pacific Century Cyberworks] Like I said, I've kept an eye on webmethods (and a few other 'XML companies') for several months now (I do not formally cover 'XML stocks' either) [another disclaimer: the one 'XML stock' I own is BLSW], which is how I first stumbled onto THCG, which has often announced its stakes in these 2 companies through PR or their website. Right after that article was published, though, is when I first ploughed through all the detailed SEC filings, including their latest 10Q for the quarter ending September. I also emailed the investor relations contact listed on their website. I had a few questions, but my main point was asking if they had made public the details about their holdings in Interleaf and webmethods, which I have been unable to find in any filings for either of these 3 companies at freeedgar.com.
> Going through your last 10Q, I notice you had around 13% of your portfolio in
> technology/communications per se.
> Most importantly, I'm quite curious as to what your cost basis is in
> Interleaf and webmethods. And how large a stake you have in these stocks.
> And when did you make these purchases?
They were quick to give me a response, but did not provide me with the detailed info I was seeking. But I get the impression we shall learn such details in the
next quarterly filing. If its fiscal year-end = calendar year, then I would make a guess that the next major filing will be a 10-K coming out around March, or perhaps they
will make this information public before then.
In the meantime, speculating what portion of this company's NAV is rooted in these 'XML stocks' is just that - speculation. This stock is not a substitute or proxy for webmethods or Interleaf.
I don't really read this board and if you need to contact me, my apologies in advance, I'm going to be 'unwired' during most of Christmas vacation.
- george.nichols@morningstar.com |
