THNK -- Think New Idea -- Rolls Royce of Web Page Creators Message Board

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Technology Stocks : THNK -- Think New Idea -- Rolls Royce of Web Page Creators

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To: James Wright who wrote (188)	4/6/1998 5:10:00 PM
From: James Wright	Read Replies (4) of 545

Upon further reflection, I think there's something very significant about THNK's acquisition of the Seattle company. Even though the Seattle company is profitable on $55 million in billings, THNK paid only $3 million for the company. By any measure, this purchase price is unbelievably low! What is significant is that the $3 million was in the form of only $400,000 in cash, with the remaining $2.6 million in THNK stocks. This tells me that the principals of the Seattle company, based on information they received from THNK, must have concluded that $2.6 million in stocks at today's price is worth A LOT MORE THAN $2.6 MILLION. Thus, this deal is like a major insider purchase (especially given that the principals of the Seattle company will remain with THNK), and it is a very bullish sign. After all, I wouldn't take $2.6 million in stocks to sell a company I built into $55 million in billings unless I was absolutely convinced that the new stocks were worth a whole lot more. If my analysis is correct, THNK at $30 is still a steal. I'm not trying to be a cheerleader for THNK. After all, I was out between 23 and 28. However, I can't see any other way to make sense of today's acquisition. This also means that you would be crazy to "take profits" by selling THNK anytime soon. Does anybody else see it differently?

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