Research on Thinkpath.com
I think we just have to wait till the sector gets hot and we will be rewarded.
Thinkpath.com (THTH) is a provider of IT and engineering recruiting, consulting and recruiting technology, training.
They are in an industry which is not hot yet but could be in the future. There was a report by Steve Harmon in his February update to his 10 for 2000 on Recruiters and one report on 8th February 2000 by E*offering analyst Victor Lim (www.eoffering.com) on the untapped investment opportunities in B2B Labor Exchanges. Both reports do not mention Thinkpath.com (because they probably don?t know the company). You should take a look at their numbers below and compare them to the others in the industry.
Year: 1996 1997 1998 1999
Revenue: 0.76M 4.70M 12.50M 38.00M (projected, so far 1-3Q: 27M)
EPS: 0.030 0.102 0.190 0.220 (projected, so far 1-3Q: 0.240)
Market Cap: 9.2 Million
Price/Sales: 0.22
Price/Earnings: 8.14
NASdaq: THTH
When I was looking at these numbers and compared them to others in the recruiting space, I was very surprised, how inexpensive Thinkpath.com. Of all the companies below they have the lowest Price/Earnings ratio, the lowest Price/Sales ratio, the smallest Market Cap and one of the highest growth rates (compare yourself):
TICKER COMPANY Rev1997 Rev1998 Rev1999 P/E P/S MARKET CAP
THTH Thinkpath.com 4.7 12.5 27.0(1-3Q) 8.14 0.22 9.2
CBDR Careerbuilder 0.0 7.0 14.9 NO 6.44 136.2
HHNT Headhunter.net 0.0 1.1 9.2 NO 9.68 157.0
HIRE Webhire 22.0 30.8 25.3 NO 5.72 186.5
HOTJ Hotjobs 0.0 3.7 20.6 NO 41.02 802.0
HSII Heidrick Struggles 180.2 215.0 415.9 NO 1.62 753.8
KFRC Kforce 479.7 680.1 746.6 32.86 0.74 563.8
TJOB Topjobs 0.0 2.2 5.9(ttm) NO 31.49 178.1
TMPW TMP Worldwide 237.4 623.6 539.6(1-3Q) NO 7.99 6500.0
All amounts in Million US$ except P/E, P/S
They are profitable, their revenues grow 200% year over year and they are trading at 0.22 price/sales.
In my opinion they are undiscovered and way undervalued. You can find more information on their webside (www.thinkpath.com). There is also an audio segment on their homepage, which gives you an idea about their future strategy, which I also like very much.
It's a Canadian company with top clients in Canada (Merril Lynch, Bank of Montreal, Revlon, IBM Corporation, American Express...) which is moving to the US (they already bought a few companies in the US) and other countries.
edit...this taken from RB thread |
