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Gold/Mining/Energy : GEAC.....Canadian best kept secret -- Ignore unavailable to you. Want to Upgrade?

To: Jack Jagernauth who wrote (1309)	7/13/2000 7:46:24 PM
From: Ally	Read Replies (1) \| Respond to of 1571

Jack, why are you still buying if you're not comfortable with management :-) Here's an informative post from bullboard For those who just bought into Geac today for the first time and haven't done your D.D. you will have realized that Geac is made up of numerous divisions. Their Smartstream Banking Systems division along with their newly aquired management data aquistion is being sold for $160 million in cash with the deal closing in days. With revenues of only $45 million, this division was sold at 3.5 time revenue. Doug said that this division was an average division in the company it terms of profitability margins. If we could value the rest of the company at 3 times revenue its market value would be 3 billion or $46 a share. Looks impossible, right? WRONG. Interealty.com, has revenue of over $100 million and unlike other internet companies it is profitable with 260,000 customers and growing. They are about to release a web portal called PropertyPlace that integrates much of the software that is presently used by the broker into one site. The software in this web portal will be ready by the end of the year 2000 (2nd or 3rd quarter of next fiscal year) The broker can get to that site from any computer anywhere and has everything he/she needs from start to close of a sale and contact with clients between sales. If Geac would spin-off part or all of interealty.com it would show a value of betweeen $300 - $400 million. My guess is that Geac is waiting for this portal to be finished before selling. If you add current sale in cash of $160 million with interealty.com sale of approx. $350 million Geac would have $500 million in cash. Geac's present market value of $744 million (approx.) would make all the other division worth only $250 million. The remaining divisions include (1. AEC Business Solutions (Construction ERP, software for wireless handheld computers such as Palm. 2. Smart Enterprice 3. JBA with System 21 and @ctive software 4. NT Solutions 5. Streamline manufacturer's ERP) 6. Hospitality Systems (Hotels, Casinos) 7. Human Resource and Financial Systems 8. Library Systems 9. Propery Management Systems (ERP for large landlords) 10. Publishing Systems (#1 in market share in the world) 11. Restaurant Systems My point is that there are many divisions that Geac could spin-off and Smartstream Banking Systems was one of the smallest divisions with less than 5% of Geac's total revenue.