To: hx4 who wrote (522 ) 11/10/1999 11:31:00 AM From: Crazy Canuck Read Replies (3) | Respond to of 1252
Three Businesses (or more) for the Price of One? I feel it is important to step back and think about what an investor in Net Shepherd has to look forward to. It may be surprising for some shareholders of Net Shepherd (WEB:ASE) to know that we are in fact holding an interest in three companies for the price of one. Yes, we bought shares only in Net Shepherd. However, during this past year, NSI has created significantly greater value for our initial investment. Not only have they developed a highly efficient and unique process for collecting data and business intelligence, but they have also germinated two other new exciting start ups as well. These other two new companies are basically private companies that Net Shepherd has created to help it expand its reach and vision into new markets. NSI has expressed their intentions of taking themselves to the NASDAQ, and they have also said that they have plans to take each of these two private companies to IPO on NASDAQ next year. What really gets interesting is that they have also expressed their intention of continuing this "spin off or acquisition" strategy either through the purchasing or starting up of a series of licensed companies. One business model they are considering is starting a Market Research company. This would be business number four. So, when you think about it - through our shares in NSI, we basically are holding Pre-IPO shares in two (or more) exciting companies which have a good chance of doing very well when they hit NASDAQ.Let me explain . . . Net Shepherd is now composed of the core company and two other private companies. These are, Answers.com, and Business Intelligence.Net Shepherd - Has developed a unique and effective process for collecting and managing information through a distributed task force. Their performance enhancement results can only be described as exponential. The speed, accuracy, and low cost service they offer will shatter their customers' paradigms about information gathering. They have a very strong management team who has International ties with some of the most prominent and well positioned companies in the world.Message 11385202 Answers.com - This is a private company owned by Net Shepherd. The bulk of their management team spent time in the trenches at idealab! - one of the most successful Internet Incubators in the world. Answers.com's primary focus will be on the Business to Business market which has been estimated to grow to $1.3 trillion by year 2003. They will also be focused on the Customer Relationship Management market. American business currently spends over $5 billion each year on contracted customer support activities.Message 10890650 Business Intelligence - This is a private company owned by Net Shepherd. The head of the company was largely responsible for building Dun & Bradstreet's eccelerate.com into one of that company's crown jewels. Both his background and experience make him one of the most qualified people in the business intelligence field.Message 11857491 As mentioned, Net Shepherd has expressed an interest in spinning these companies off as IPO's on the NASDAQ markets some time in the year 2000. I believe that both of these companies, and their management teams will be well received by the market. With their continued expansion of start up businesses, I like to think of it as a mutually beneficial grouping of companies similar to Paul Allen's (the co-founder of Microsoft Corp.) recent business strategy, and the Internet Capital Group's (ICG) model of linking upstarts together in keiretsu - like alliances. What this tells me, is that for an obscenely low price of ~$3.00 CDN (~$2.00 US), we have the opportunity to realize the benefits of holding a stake in three (or more) well positioned, well managed, well connected, and exciting companies for the deep discounted price of one. I can hardly wait till Net Shepherd does get listed on NASDAQ. I want this to happen, because I believe that we as Canadians seem to have a very hard time appreciating both the value and huge growth potential of our home grown businesses - even when they stare us right in the face. I really don't see this happening on NASDAQ. Some more musings from a . . . Crazy Canuk