ALL: Message from Orlando from Holland
Hi everybody, this is message from Orlando from Holland, which he asked me to publish on SI.
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Hi all,
This is a report of the visit from Erik Scholten to Financial Intranet
on 18 november 1998, and personal impressions from me.
The purpose of this visit was to meet management and to look at the
equipment they use. All that to get an overall impression of this
company.
Erik Scholten who visited fntn is graduate at the university for
Economics in amsterdam and has worked in the US many times.
1. MANAGEMENT
Erik talked to M. Sheppard and Maura Marx.
We, Erik and me, believe that Mister sheppard is a serious man who knows what he is doing and there is no doubt on his integrity.
Our feeling is that FNTN management with Mr Steven Weller, Dr. Joseph
Engelberger, Maura Marx can bring this company where we all hope for.
Mister Hagerty has no position in the board, but can be very important for the company therefor as well.
2. COMPANY PROFILE
Location: The FNTN office is in the building of Cibageigy, a big
pharmacutical company in Ardsley.
Business summarie: known by everyone
Employees: 8
Financial report: none available
Subsidiare Financial Telecom 100%
3 INTERNAL ORGANISATION
We have the feeling that due to the enormous enthusiasm, some functions and activities are managed/handled by different people.
The responsibility and the know how of software and hardware are in good hands.
4. EXTERNAL ORGANISATION
They are working with hire salesmen. These Salesmen are educated by
barry stein. And are working on provision.
3. MARKETING
The method used by the company is to put very inportant people in
the board of directors to use their influence on behalf of the company.
4. PRODUCT
Their products appear to be very competitive in comparison with others.
They can give a customer a complete product at low cost.
Their video on demand was very good on the intranet and performing just a little less on the internet.
5. COSTUMERS
Their costumers are at the moment small and middle sized brokers.
We feel that hanging on just and only on brokers is not recommendable,
but suggest FNTN to look at industries as health and government as
well.
6. PREDICTION OF REVENUES
We feel that it is possible that financial intranet achieves a positive cashflow sooner than later.
We estimate a revenue of US $ 10,000 to 150,000 per customer per year, which makes an average of (10,000 + 150,000)/2 = $80,000 per customer per year.
If FNTN manages to get 400 customers per year, the total revenue in the first year would be 400 * 80,000 = $32,000,000.
With the very low overhead costs FNTN has, we think a net profit of at least 20% should be achievable. Thus this can generate a net
profit of 20% of 32,000,000 = $ 6,400,000 or $0.38 per share (based on 16,500,000 shares).
In 5 years time this can grow to a revenue of $160,000,000 or $9.30 per share.
On base of these assumptions and 30 times the profit, the FNTN share
price should be $11.50 in the first year and $ 290 after 5 years.
And remember that the companies' first prediction in their press release mentioned revenues for the first fully quarter $ 15,000,000 dollars, which means $ 60,000,000 in the first year. We are on the low side. And last but not least, currently internet stock prices are based on revenues, which means we are the low side as well.
PS Based on the prediction of $11.50 per share and 16,500,000 shares
this company is supposed to have a market capitalisation of $ 200,000,000. A smart guy can buy the company now for less than $ 16,000,000.
GENERAL
This Fully E Commerce Company which activities focus on the Business to Business and Business to Customers area is in a very explosive growing market, much and much better than the rising retail internet stocks companies of today.
Conclusion.
Erik's general impression is that FNTN is a little, but very ambitious
company.
Erik and I believe that with the present management and Siemens involvement this company will survive. And we can expect great things of this company.
The challenges described as above are totally inherent to a start up
company and thus we have no problem with that.
We think that this is a speculative stock.
Orlando
(Present1@wxs.nl)
Disclaimer.
The above mentioned is Erik's and my own conclusion and most definitely no buy, sell or hold recommendation. We carry no responsibilities what so ever.
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If you want to contact Orlando directly, you can email him at: Present1@wxs.nl
Cheers,
Robert |
