Here is the most recent note from Fab Fred Ziegel on DVNT. Hahahahahahah. BTW, I never knew that DVNT was not Blue Skied in all 50 states....hmmmm...
08:41am EDT 4-Apr-00 Tucker Anthony Cleary Gull (Frederick D. Ziegel
Diversinet Corp. (Strong Buy); Reiterating Strong Buy And $40 Price Target
Diversinet Corp. (DVNT/NASDAQ: $14 3/4)
Reiterating Strong Buy and $40 Price Target
Rating: #1-Strong Buy April 4, 2000
Market Cap: $325 Mil.Frederick D. Ziegel, CFA 212-225-8064
fziegel@tuckercleary.com
BLUE SKY ALERT: Transactions in this security are not permissible with clients residing in the following states: MI, ND, NH and SD
Diversinet had a conference call with investors yesterday to address the recent controversy and update investors on the progress of the company. Some of the points made were the following:
The relationship with Research in Motion (RIMM-$85) is intact and moving forward with additional deployment projects in secure e-mail and healthcare. A conversation with Jim Balsillie of RIMM confirmed the relationship with Diversinet is "fine".
Steve Sampson from Saraide (recently acquired by Infospace-(INSP-$117 1/8), project manager for a GSM-based mobile banking application, said the company is working with DVNT and Verisign (VRSN-$116 5/8) and that DVNT's support of both RSA and Elliptic Curve algorithms is better than Verisign that supports just RSA(RSAS-$50 5/16, #1-Strong Buy). He also stated that Infospace was moving forward with Diversinet on a mobile banking application that would begin pilot deployment in 4-6 weeks, although Diversinet has not been formally selected. The wireless implementation can also be marketed for other banking applications around the world. We point out that Verisign's involvement in wireless security at this point is limited to WAP server certificates. It does not have a client solution for wireless PKI.
Diversinet reiterated that the number one near-term objective is to align itself with as many partners as possible. New customer announcements were characterized as being very close at hand, which we take to mean the next few weeks. As we have stated previously, we believe partner announcements are what will drive the stock in the near term, not revenues and earnings.
We Maintain Our Strong Buy And $40 Price Target: The stock has been hammered along with all other technology stocks and the controversy over some of their partner relationships. Looking at the bigger picture, Diversinet is delivering the only wireless PKI solution. It is working on more deals across device manufacturers, application developers and service providers to capitalize on its leadership position. We expect some high profile partnerships to be announced in the next few weeks. Our price target applies a 25 multiple to our fiscal 2002 revenue forecast of US$45 million.
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