LEAP - Innovative ad agency a bargain at $3/shr? Message Board

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Microcap & Penny Stocks : LEAP - Innovative ad agency a bargain at $3/shr?

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To: Andrew Hunter who started this subject	11/28/2000 3:30:17 PM
From: Don Earl	of 600

I had a chance to talk to Steve Tober, the COO, this morning. I had written a letter expressing a number of concerns and he was good enough to give me a return call. My overall impression that this is a company with more than enough talent in management to return strongly to profitability remains unchanged. One of the high points of the conversation is the Company will launch a completely redesigned web site on Feb 14.. It's my understanding the current web site was put together in haste at the time of the merger and they are currently working to turn it into a state of the art showcase for the Company's services. I also understand there are plans to incorporate conference calls and presentations in the "Investors" section to better communicate the Company's progress and strategies to shareholders and potential investors. The topic of Fred Smith's departure came up. My impression is they were sad to see him go, but it became necessary in order to consolidate all the subsidiaries under the single Leapnet branding, and to implement the steps required to run the business for profit. The good news is they are pretty much over the hump as far as the consolidation process is concerned and now it's just a matter of fine tuning operations to grow the business. Since their customer base is mainly Fortune 500 companies, they have virtually no exposure to the recent melt down in dot coms. I gather the Company hasn't been actively campaigning for analyst coverage while consolidating the merger and more or less wanted to wait until everything is running smoothly enough to give accurate forecasts. I also think there has been some uncertainly, not just with Leapnet, but with corporate America in general, on the new SEC fair disclosure rule. Companies can no longer tip analysts with inside information ahead of the rest of the market. My guess is a large part of recent concerns over earnings growth in the market is mainly the result of companies trying to find their footing in giving the public guidance which can be easily surpassed in future quarters. It goes a long way toward leveling the playing field for private investors, but it also leaves private investors with the burden of assessing more public information to use in their investment decisions. Steve seemed particularly proud of the Company's clean balance sheet, and I don't blame him. I've read so many messy filings, littered with bogus accounting entries, that finding a company with as clean a balance sheet as Leapnet is a pure pleasure. It's amazing this stock ever went below $4 and absolutely insane that it broke below $2. SPRI was a $25 stock with current management and that's not counting recent additions with very solid backgrounds in the business. A year from now there are going to be a lot of investors kicking themselves for not holding a position in this company at these prices.

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