Article on M&A West, Inc. by SiliconValley.Internet.com
siliconvalley.internet.com
Give Me Your Poor, Your Tired, Your Undervalued Dotcoms
By Jayson Matthews
No, it's not an oxymoron, says M&A West. There really are undervalued Internet companies.
To prove it, the San Bruno-based technology holding company announced a buy-up strategy to counter the forecasted downpour of dotdeath in an overly congested Internet world (See August 18 "The Critical Masses").
The plan: Seek out and acquire undervalued dotcoms, and then hold them close until the storm passes.
To put it mildly, Internet investors are a little more skeptical then they were just a few years ago, a skepticism certainly reinforced by Forrester Research's recent prediction that only about 200 major eCommerce plays will survive to see 2003. The rest, says Forrester, will either dry up and blow away to the Temp folder on a forgotten C: drive, or be absorbed by one of the rapidly expanding online giants (In this story of David and Goliath, Goliath laughs at David's little business plan...and then steps on him).
Combine that with the recent slump in Internet stocks, says M&A, and you have solid ground for strong cash positions in an avalanche of tumbling dots.
"We have done extensive analysis, screening and evaluation over the past 120 days to identify undervalued opportunities in the market," says Scott Kelly, president and CEO of M&A West. "We believe there are dozens of well-run companies that are trading at or even well below their asset value."
Since the cost of acquiring troubled companies would be significantly less than building a similar business from scratch, Kelly says the strategy is central to lucrative opportunities in consolidation, break-up, and roll-ups.
The company may be well positioned to take advantage of these opportunities, granting they indeed exist. Last week M&A announced record revenues and earnings, which means the company doesn't necessarily have to dilute its stock to successfully execute its acquisition strategy.
"Unlike other Internet incubators, who may fund Internet companies in the hope that they will make money and go public in the distant future, our primary focus is on monetizing transactions in the short run," adds Kelly. "Our acquisition strategy is designed accordingly, to enable us to make investments in severely undervalued companies with a clearly executable plan for our profitable exit."
Hopefully, at least for the companies involved, that won't also mean a hasty exit.
M&A has already begun discussions with several potential candidates, with the first acquisition announcements expected as early as next month.
ADDITIONAL CONTACT INFO AND DISCLAIMER:
For more information you can contact InvestorServicesOnline (Internet-Specific Investor Relations) at E-mail: investorservicesonline@yahoo.com or Company Representative, Rick West, TEL: 650/827-7308 (Public Relations) E-mail: Rick@mawest.com
Rick West and Merger Communications are not associated with InvestorServicesOnline.
Disclaimer Information for InvestorServicesOnline:
Investor Services Online (ISO) is a compensated agent of M&A West Inc. and has been hired to perform certain investor relations services for the Company. Investor Services Online is being paid 1,200 shares per month for a 12 month period. We are not a registered investment advisor and suggest that you consult with an independent
registered advisor as well as do your own research before investing in any stock. The opinions and analysis included herein are based on sources believed to be reliable but no warranty, expressed or implied, is made as to their accuracy, completeness or correctness. Readers are advised that this communication is issued solely for information purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy any securities. All information posted on Internet discussion sites by Investor Relations Online relating to M&A West Inc. is supplied by M&A West Inc. The reader should verify all claims and do their own due diligence before investing in any securities mentioned. Investing in securities is speculative and carries a high degree of risk, which may or may not be suitable for everyone. |
