We can start to move in monday, if daytraders will jump in. Following recommendation comes from RealStocks.com:
This Stock of the Month profile is brought to you courtesy of RealStocks.com
RealSTOCKS.com new Stock of the Month for August is HomeCom Communications ( Nasdaq SC : HCOM ).Website: homecom.com .
RealSTOCKS.com rates HCOM a Strong Buy at these levels, and they believe it might reach a $4 target within 6 months from its current price of 5/8. This high potential return should not go ignored by risk-tolerant investors.
**RealSTOCKS.com believes HCOM is VERY Undervalued at these prices, trading at only approximately 1X times its revenues, while it's peers are trading at 10-15 times their revenues.
**HCOM announced last week that the company was selling the InsureRate division for an undisclosed (as of yet) amount of cash, which should alleviate investors' concerns on working capital. In doing my due diligence, it is very clear that InsureRate was a large part of the company's cash burn. So, with this divestiture, HCOM brings in capital (which will be disclosed upon the transaction closing in the next few
weeks) AND cuts their capital requirements significantly. Investing before this announcement makes sense with the stock at these depressed levels as it should encourage the investment community on the company's commitment to achieving profitability and enhancing shareholder value.
**HCOM will now focus exclusively on Web development and internet consulting services to the financial services industry, a rapidly growing adaptor of the internet. As indicated earlier, this is where HCOM finds all its gross income, before SG and A expenses. With this clear path to
eventual profitability delineated, the investment community should reward HCOM with a recovering price.
**Web Development business is very active with outgoing proposals and presentations. Major financial institutions are involved. Note HomeCom's client list later in this report.
** Overhead savings program continues to positively impact cash flow requirements.
**Approximately a 6% equity stake in, and a strategic partnership with, a (currently) privately-held Internet Security company (iDEFENSE). iDEFENSE has recently expanded their staff, suggesting their business is going well.
(http://www.idefense.com)
First Quarter 2000 report showed a 163% increase in revenue vs. First Quarter 1999.
Followed by Value Line Special Situations newsletter with a Buy/Hold rating
** HomeCom is "Ranked among the top Internet consulting firms by Ziff-Davis and Fortune magazine", and was named by the Emerging Company Report as one of the 25 Most Interesting Companies of 1998.
NASDAQ: HCOM
RECENT PRICE: 5/8
SHARES OUTSTANDING: 8,353,619
REVENUES: $8,170,000 (last four quarters)
BOOK VALUE PER SHARE: $0.64
INDUSTRY: INTERNET SERVICES
"HCOM is trading 1.3 times its book value-- very inexpensive for an internet stock"
CORPORATE PROFILE
HomeCom Communications, Inc. (NASDAQ Small Cap: HCOM) is an Internet Application Service Provider (ASP) specializing in Internet application solutions for the financial services market. HomeCom's HyperBanking and HyperWeb solutions providing all of the professional services, Web
development, Internet security services and technology necessary to develop and integrate an online marketplace. In addition, HomeCom offers several products and services designed for e-commerce in the financial services
industry, including Personal Internet Banker(tm) (PIB), Harvey(tm) One-to-One Marketing, and Nextra(tm) (B2B extranet).
HomeCom helps financial institutions build electronic channels to their customers and business partners. The company uses advanced I-net (Internet, intranet, extranet) technologies to develop complex Web-based applications
for the banking, insurance and brokerage industries. With the expected divestiture of HCOM's InsureRate division soon, HomeCom's focus is one the following:
HomeCom Professional Services - The Professional Services Team creates Internet and intranet/extranet business applications, solutions and technology focused on banking, insurance and brokerage client markets.
Applications include software programs ranging from complex extranet solutions for insurance companies to marketing-related Web sites for banks combined with Internet banking. HomeCom's customers for are typically
Global 2000 companies and the engagements average $250,000, with revenues recognized over a six-month average. Recurring revenue has been historically limited to maintenance and hosting of the applications.
HomeCom's Professional Services Group offers standards-based expert services that are tailored to provide end-to-end solutions that meet the specific needs of customers in the financial services industry. These include:
* Strategic Consulting -- in-depth expertise in the Financial industry;
* Systems Engineering -- thorough knowledge of automating business processes;
* Product-Based Applications Development - tailoring standards-based products and leveraging strengths in human factors, graphical user interface design, consumer behavior, interactive design; and
* Systems Operation and Maintenance -- technical, security and operations expertise.
HomeCom's consulting team possesses a wide scope of vertical industry, business process, human factors, and technical expertise. Strategic planning is integrated with security, creative, technical, and operations groups to give a "real world" influence to HomeCom strategic planning services. This ensures that the client's total needs are met and a specific set of solutions will be delivered that will work. HomeCom then calls at the client's option upon development and operational services to implement and manage the solution.
Other Services - HomeCom provides professional services to businesses that are concerned about network applications and information security through a strategic partnership and 5 per cent ownership of iDEFENSE, a world class security consulting organization. Customers include Fortune 500 financial service providers, airlines, energy companies, media conglomerates, manufacturers and others. Management and technological staff directly support end-customers by offering both consulting and integration engagements. The HomeCom - iDEFENSE partnership offers a distinct competitive edge by providing complete Internet-based security solutions to the financial industry.
HomeCom also provides Internet outsourcing services that are maintained in its key-card access-secured, 1400 square foot raised floor, dual Leibert air-conditioned Network Operations Center in a Class A office space at the
Company's principal offices. Telecommunications are provided to the computer room through multiple leased T3 lines directly connected to the Internet provided by interchange carriers. To ensure redundancy, a different carrier provides each connection.
HomeCom's Internet Financial Products
HomeCom's product solutions, which are built around Industry standards such as Open Financial Exchange (OFX), are designed to enable its clients to increase revenues, achieve distinct competitive advantages, reduce costs, and improve customer support. The flagship product, Personal Internet
Banker (PIB) provides interactive Internet banking including bill payment, balance inquiry, funds transfer, statement download for checking, savings and credit card accounts. HomeCom's Harvey software collects demographic information from users for personally tailored one-to-one marketing efforts.
HomeCom also offers other product modules, including NeXtra(tm) to create a business-to-business extranet..
HomeCom's Clients
ABN AMRO, Aetna Life Insurance, AFLAC, American Association of Independent Investors, American International Group, The Chicago Board of Trade, The Chicago Mercantile Exchange, Colony Bank, COVA, CUNA Mutual, F&G Life, Freedom Investments - Tradeflash, Fiserv, Georgia Power Federal Credit Union, Ladenburg Thalmann ,Marine Midland Investments, Munich reinsurance, National Commercial Bank
(Saudi Arabia), Norwest Investments, John Nuveen & Co., R.R. Donnelley & Sons, Regions Bank, Robinson Humphrey, Salomon Smith Barney, SouthTrust Bank, Summit Bank
Management
Harvey Sax
President & CEO
Mr. Sax is one of the founders of HomeCom Communications, and as president and chief executive officer, he is involved in the strategic planning and direction of the company. Mr. Sax spent eight years in the securities industry as senior vice president at Bear Stearns, PaineWebber and Oppenheimer, where he was involved in the financing of numerous start-up technology companies.
Claude A. (Sandy) Thomas
Chairman - Strategic Planning & Finance
Mr. Thomas is also a principal at Ambassador Capital Corporation, an investment banking firm specializing in emerging technology companies. He assists electronic commerce and emerging technology companies with financing,
business strategies, strategic alliances and financial restructuring.
Mr. Thomas started his career with Electronic Data Systems in the Wall Street division, and went on to hold executive positions with Coopers & Lybrand and Digital Equipment Corp. He was the chief executive officer of International Banking Technologies and other subsidiaries of First Financial
Management (now First Data Corp.). From 1994 to 1997, Thomas was executive vice president of corporate development and software solutions for CheckFree Corp.
Mr. Thomas' numerous articles on the application of information technology to the financial services industry have appeared in publications such as American Banker, Banking, Industrial Marketing and the Boston Globe.
Timothy Robinson
Chief Financial Officer
Mr. Robinson, a CPA, joins HomeCom from Tanner's Restaurant Group, Inc., where he served as the Treasurer and Chief Financial Officer.
Prior to Tanner's, Robinson was a senior manager with the firm now known as Price Waterhouse Coopers LLC for 10 1/2 years.
Kenneth J.Bozi
Vice President of Sales
Mr. Bozzi has been involved in all aspects of business and technology decisions as it pertains to the financial services industry. He began his career at Irving Trust Company in New York. After six years, he moved to Midland Bank in London as a Business Development manager
for the bank's Fortune 500 business, largely responsible for fee-based products. Mr Bozzi moved on to Ernst and Young involved with technology consulting to financial institutions after three years at Midland Bank.
For additional information:
INVESTOR RELATIONS
Rick Lutz
Director of Investor Relations
888-HOMECOM ext. 695
rlutz@homecom.com
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Veiko |
