Little DD to last pick...
I bought EPRE today...IMO there was a knee jerk reaction to the 50 basis point cut which caused a selloff in thinly traded issues (I made some money on that situation short)...The drop in EPRE sets up an extreme bargain...EPRE still expects to generate $16 to 17M this coming Q inspite of an exchange of assets for stock with Axis of Australia...The portion of the 4th Q revenue of the sold asset was 10% last Q and is part of the slight decrease in revenue...The company is expected to be breakeven for the Q on an organic basis...Growth is 50% annually...
The current market cap is only $105M which is preposterous IMO...In the Q ending March 31, 2001 EPRE will have a gain on the sale of stock of $40M on top of the revenue of $17M...
I estimate the current Cash on hand to be $110M at EPRE and the company has an investment in SWBD that is underwater but is accounted for seperately...The current market value of the SWBD investment is approximately $30M on 9,802,421 shares...The beauty IMO is that for every $1 that SWBD moves up from $3 is a $9.8M gain for EPRE's bottom line...SWBD still currently holds $70M additional cash from EPRE (as of December 31, 2000)...The volume in SWBD has been pathetic lately but I would suspect that the stock will climb before the key March 31 deadline...
If the stock does not climb then nothing is lost...SWBD has a relationship with AOL/TWX and CBS/VIA...Both of those media giants have an equity stake in SWBD as well...
With the current price of SWBD $3 the assets owned and controled by EPRE are above its current market cap:
CASH: $110M
STOCK: 40M
_______________
C & S $150M
Since EPRE is not losing money and still shows some growth inspite of horrible market conditions this is a tremendous value IMO...You are buying a buck and a half for a buck here...I suspect that there are some shorts with their thumb on the stock but this just gives you a no brainer buying opprotunity IMO...H.C. Wainwright. The price target is $12...
SWBD...
For the 2000 fiscal year, revenue grew to $20.3 million, up 145% from $8.3 million for fiscal year 1999. As of December 31, 2000, Switchboard had approximately $70.8 million in cash and marketable securities, coupled with the strong partnerships with two of the largest and most widely recognized media companies in the world -- CBS Viacom and AOL Time Warner -- put SWBD in a unique position in the industry in terms of financial and partnership strength...
SWBD ownership:
AOL Time Warner Inc. : 1,496,260 shares
Mass. Financial Services: 2,145,427 shares
Viacom inc.: 8,555,497 shares
ePresence corp. : 9,802,421 shares
This is why the stock (SWBD)is so thinly traded IMO...
CREDIT SUISSE FIRST BOSTON INC is a new holder of EPRE stock as of December 31, 2000...
Reference:
Last Q report EPRE:
biz.yahoo.com
Last Q report SWBD:
biz.yahoo.com
SWBD IR:
corporate-ir.net
Info Quotes both companies:
quotes.nasdaq.com.
EPRE analyst info:
earnings.nasdaq.com.
corporate-ir.net. |
