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Gold/Mining/Energy : T.ITE: iTech Capital (TSE) -- Ignore unavailable to you. Want to Upgrade?

To: keith massey who wrote (1556)	11/7/1999 5:06:00 PM
From: CF Rebel	Read Replies (1) \| Respond to of 5053

Keith, Here they come, but at least it's only a trickle now. "bargainman" is obviously a CMGI guy so I guess his name is an oxymoron. CMGI is fully priced and will continue to rise in the future but it is no "bargain." Everyone knows about it. bargainman's questions indicate he's done only cursory due diligence on JDX, not to mention this Smith guy, who can't discern the difference between two very different companies, and who goes off to get his big "brother" to fight his fights for him. Back in April when I was invested in Rare Medium Group (RRRR), the Apollo investment firm pumped $75 million in cash into the company. At that time, the company was still organizing, had about a million dollars in working capital (as best I could tell) and the financials were impossible to get a handle on. (CMGI's situation was similar back when I first looked at it in 1995, and that is why I never invested in it - it was my "test case".) Upon the above-mentioned investment by Apollo, the stock took off (topping at $20) and it seems every SI short came out of the woodwork waving SEC documents about prior convertible issues, not to mention the one that came with Apollo's investment. Upon that investment, management announced it's intent to incubate internet companies. The company, in the months prior to that, had hinted at that strategy as it built it's web-site-building business and it's network to support that. Longs said that this could be another CMGI and shorts, who knew nothing about the company except numbers, were indignant that anyone would mention RRRR and CMGI in the same breath. (By the way, where was bargainman back then?) So, my point in talking about this is directed at the more general issue of the evolutions of companies. Hey, they all start small and a few with reputable, visionary individuals in charge, can put together good, productive companies. Ask Gary Winnick of Global Crossing what he knew about telecommunications when he started the company (he says, "nothing"). Or, ask Bernie Ebbers of MCI Worldcom the same (he started in the motel business, of all things). As small-cap investors, it is up to us to find the companies that have a real shot at success. Naturally, we want the most bang for the buck so it helps if we can find an undervalued situation with enough quality clues staring us in the face to get us in on the proverbial ground floor. The biggest clue staring us in the face at this time is JDX management's stated business intentions. There's lots of smoke here and only a little bit of fire (medsite). We can't yet say that JDX is an undervalued situation because the market doesn't want to reward the stock price until good news is official. Anticipation of that is now beginning to move the price. Finally, I find some parallels between JDX's current situation and that of Rare Medium's a year ago. The business is just beginning to coalesce and JDX wants to do the internet/tech thing. But JDX has some advantages that RRRR didn't. JDX has about thirteen times as much cash with no liabilities. JDX's outstanding shares is slightly more than RRRR's was then. RRRR, at this time last year (a comparable period of it's evolution, IMO) was trading between $3 and $4 (US), or about five times JDX's current U.S. price. If JDX was trading on the NASDAQ, I'd expect a more efficiently priced JDX (higher, of course). When JDX gets to the point of getting to the NASDAQ, that visibility will be worth a lot more to us. FWIW, I expect this to be the most rewarding stock I've owned (outlook - one to two years, bumping that forward if it stays on track). For those interested in Rare Medium, their latest earnings were released last week. The most interesting item in it was their listing of their percentage ownership in their internet holdings. That seemed to be the cause of a temporary price spike. If anyone wants to invest in that one, I believe the price will settle a few more dollars between now and the next report (March). I've been out of RRRR since April, but watching. Here's the link to their report: biz.yahoo.com Thanks to Keith and all others for their insights and opinions. CF Rebel P.S. Isn't it amazing that the SI spellchecker highlights "internet" in red?