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Technology Stocks : Viador (VIAD) - Enterprise Portal -- Ignore unavailable to you. Want to Upgrade?

To: Carl R. who wrote (285)	1/1/2001 8:21:49 PM
From: Labrador	Read Replies (1) \| Respond to of 294

I agree with you on SQSW. A couple of subjective comments: 1. It seems to me that Plum is growing revs. faster than Viador, but their gross profit percentage is considerably lower. 2. Plum has less cash than Viador. 3. Without a successful IPO, Plum is going to have cash flow problems [as Viador may as well]. 4. You note the increased deferred revenues of Plumtree vs. Viador. But you must take into account the different accounting policies. Unfortunately, Plumtree’s description of this accounting method is virtually nonexistent in the financials. Assuming both equivalent, it does seem that Plumtree has passed up Viador in growth. 5. I cannot see Plum being valued at 20x the market capitalization of Viador nonsensical in my view. 6. I note from the statements of Plum that they must do the following to eliminate the convertible preferred stock that they’ve issued in the past years – this is how the company has funded itself. Each share shall automatically convert prior to the closing of an underwritten public offering of the Company's common stock with an aggregate offering price to the public of at least $15,000,000 and a public offering price per share of at least $12.00. Accordingly, I would expect that Plum will go for a minimum of $12 per share – but reduce the offering from 5 million shares to 3 million. I would expect that they will need to give up more equity as a percentage of the company to get the deal done. I suspect a market capitalization in excess of $150 million will not get done. 7. If Plum offering goes, this will be very good for Viador’s stock price.