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Gold/Mining/Energy : Capital Alliance Group - CPT (CDNX) -- Ignore unavailable to you. Want to Upgrade?


To: keith massey who wrote (378)5/14/2000 2:48:00 PM
From: keith massey  Read Replies (1) | Respond to of 960
 
A few people on the Stockhouse thread have been talking about the current price of the stock. I agree with these individuals that the short term price decline is discouraging but I never planned on being in this one for a short term flip. I have bought all the way up from $1.40's to $4 and back down again and the current price is now closing in on my average cost. Who would have ever thought I would get sucked into the dollar cost averaging game promoted by all the major brokerage firms <ggg>. The current market capitalization of the company is approximately $20 million at Friday's close, close to the cash value of the company. When SEG IPO's on the GEM exchange they will have around 3-4 times this market capitalization in cash and their holdings in SEG will be valued about the same, plus they are holding CIBT who is just going into a growth sector. It doesn't take a mathematician to figure out that when they IPO we will not be close to this price.

So what event(s) in my opinion will move the price between now and the fall IPO?

The obvious answer is that they need some promotion. Few brokers/investors I have talked with have heard about CPT and the potential of both SEG or CIBT. The company needs to spend some money to get the word out. We already know that they are starting a multi-million dollar advertising campaign in June to promote SEG and this will of course bring eyes (and hopefully lots of buyers) to CPT. According to their website they are in talks CNN, CNBC and the Wall Street Journal (and others) for this media campaign. They wouldn't start a major advertising campaign without the site being live so I am expecting this very soon. The company has been doing beta testing trading on a website not available to the public eye for a while now so the only thing they need to do to make the site public is flick the switch over. In my opinion, to get the stock moving it is also necessary for the company to get the SEG site live to the public and start signing up some customers to prove the viability of this model to investors. With a live site and some promotion I would expect the stock to start moving in the RIGHT direction <ggg>. With that in place, any new countries / brokerage firms coming on-line, partnership agreements with other financing sites, or technology additions (e.g. wireless trading) will help move the stock and so will any positive developments with CIBT. Of course the IPO will definitely be a catalyst for higher prices.

I noticed a few small problems with the new CPT homepage. As an active investor in the company I am forwarding my comments/corrections to the webmaster@cag-global.com and would suggest that other people do the same thing. The good news is that the SEG website was contracted out to experience professional groups, as well as an in-house team, so I am expecting, and hoping, to be very pleased when the site goes live and don't see the current hompage as a big reflection on SEG site.

Best Regards
KEITH