SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Net Perceptions, Inc. (NETP)
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: rupert1 who wrote (2448)4/26/2000 8:21:00 PM
From: rupert1  Read Replies (1) of 2908
 
An analysis of the nexus between general market fears and NETP in the recent correction.

ragingbull.com

By: vocco (victor)
Reply To: 7963 by Intentional Tuesday, 25 Apr 2000 at 5:53 PM EDT
Post # of 8008


Intentional:

These are the issues which contributed to the crisis of confidence which deflated NETP and many other stocks by 60-70%

1. Perceived problems with pure dot.coms in B2C
2. Perceived problems with transactional exchanges in B2B.
3. Old economy companies muscling in on e-commerce.
4. Precarious cash position of new dot.com companies.
5. Because of cash shortage and competition of dot-coms profits in 3-5 years no longer feasible.
6. Market doubts result in shrinking of multiples.
7. Large cap techs also overvalued.

How do these apply to NETP?

1. Less than 25% of its revenues are derived from pure B2C dot-coms; maybe 5 of the customers at most may be under strain. They have already paid for the NETP installation. NETP has 191 customers.

2. NETP has no B2B customers of the kind under scrutiny.

3. NETP is selling directly to the old economy customers and helping them muscle in on e-commerce and render intelligent other aspects of their marketing - call-centres, catalogues, ad targetting, e-mail targetting, managment of enterprise knowledge, analysis of data basis, and real time personalisation.

4. NETP is flush with cash. It needs to burn about $12 million more before it reaches profitability. It has $120 million.

5. NETP profitability could be less than one year away.

6. NETP never enjoyed inflated multiples: even if it were priced at half the norm for its sector NETP's stock price should be $50+

7. In a deflated market in which previous high flyers are suspect, investors should be looking for future leaders capable of 1000% share increases in 5 years. NETP is currently 40% higher than its IPO price one year ago: it was almost 400% higher a month ago. TA and fundamentals suggest that it will surpass its previous highs this year. Given the small float, strong upward momentum will cause rapid gaps up when the conditions are right. There is a self-imposed lock-up on insider sales until about 27th June.

Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News