Dave (partially OT) -- re ASKJ, GS is holding a conference call for clients tomorrow (11:00 Eastern) with the company's CEO Rob Wrubel and President Adam Klein to discuss recent developments, including the ASKJ/GMGC/NUAN voice-enabled applications announcement. I'll be listening in and will report back if there's anything major relative to GMGC and/or ASKJ.
I don't have a strong opinion on ASKJ (and in any case all my eggs are in one basket -- GMGC), but it does look attractive based on GS's analysis: Estimated EPS loss this year of $1.76 on $108.2 million revenues, with an estimated loss of $0.16/share next year on revenues of $228.5 million. Expected to turn profitable in 3Q 2001 (one quarter ahead of management's guidance). Current cash and equivalents of $133 million, sufficient to sustain operations until profitability is reached. 125 corporate customers now, up from 40 a year ago. Key will be continued strong growth in new corporate customer acquisitions (prospects/opportunities should be enhanced given the GMGC/NUAN alliance), as well as the upselling of current corporate customers to larger contracts.
Based on a sum-of-the-parts valuation analysis of ASKJ's two synergistic businesses (consumer Web properties -- estimated to do $123.8 million in sales next year, and corporate business solutions -- $104.7 million) and applying the current price/sales multiples (using 2001 sales forecasts) of the stocks of peer-group companies (e.g., media service providers such as LookSmart/GOTO.com/DoubleClick, and e-CRM vendors such as Kana/Siebel/Blue Martini/eGain/Verity/LivePerson), GS estimates that ASKJ should be trading at nearly twice its current price. The stock is on GS's Recommended List.
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