I'm sure some are wondering what the write-up looked like. Here it is for those who haven't seen it.
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Over the past two years, Internet companies have been the darlings of Wall
Street. Companies like Netscape, Yahoo and Amazon.com have become household
names and have produced spectacular returns for investors. WordCruncher
Internet Technologies, Inc. (OTC BB: WCTI) is an Internet search engine
company that is developing a unique and out-of-this world search engine
unlike any others. President and CEO, M. Daniel Lunt has confirmed that the
upcoming rollout of their Internet search engine and information display
product is on schedule. We now present to you:
Our feature PennyStock Pick for Friday, December 4, 1998, or better yet:
Stock of the Year for 1999!
WordCruncher Internet Technologies
(OTC BB: WCTI)
Bid - Ask: $3 1/8 - 3 3/16 (Dec. 2, 1998)
Significant Newsbreak
WordCruncher's Search Engine Will Go Online to the
World in First Quarter 1999!
World in First Quarter 1999!
Company Overview: WordCruncher Internet Technologies, Inc. (WCTI) develops
multi-lingual search engine products in support of Internet, Extranet, and
Intranet applications. These products are characterized by their ability to
more quickly find relevant information and by their new and unique way of
representing the information to the user. This method of representing
information will save the user time and reduce the frustration inherent in
existing search methods. With its multi-lingual capabilities, WCTI offers
search solutions that truly set new standards while addressing the needs of
the global community.
Why PennyStock Picks Selects WordCruncher as the Stock of the Year for 1999!
- Launching of commercial release of their search engine to the -
world in 1st quarter 1999 (mid-February).
- Strong management with proven track records.
- Leading and innovative technology in an industry that is red hot.
- Vastly improved model as compared to other search engines, based on:
- presenting search results faster
- "context analysis" on word or phrase
- full complement of advanced search capabilities (e.g. collection
of data is through use of advanced spidering systems)
- representation of information
- the opportunity to have studied and improved upon the initial and
current search engine generations
- Ability to search virtually all of the world's written languages. The
multi-lingual capabilities will not be complete in the initial release.
Demonstrations have shown the effectiveness of the multi- lingual search
capabilities, even for handling languages that consist of symbology
(i.e., Japanese, Chinese, Korean, Russian, and Hebrew).
- Revenue will be initially generated through traditional
advertisements/banners on site and through licensing opportunities
at multi-national levels.
- Marketing strategy will be to acquire a larger database by drawing
visitors to the site and attaining publicity through industry analysts
and the press.
- Company plans to be transferred to NASDAQ by mid-1999.
- Current stock activity is higher when compared to the leading search
engines in their infancy.
- Potential for company to be one of the best price movers in 1999.
Company Products:
WordCruncher Internet Search Engine: The WordCruncher Internet search
engine provides powerful search capabilities and a new and vastly improved
model for presenting search results. In addition to its presentation
methods, WordCruncher will provide a full complement of advanced search
capabilities - including the ability to search virtually all of the world's
written languages.
Internet Users: Imagine being able to find what you are looking for on the
Internet quickly and easily without having to go back and forth from site
to site to see if they have pertinent information. WordCruncher takes the
trial and error out of the search process by presenting search results in a
more intuitive, timely and effective manner.
Internet Businesses: Imagine being able to close more business by improving
your customer's ability to find information on your site. The WordCruncher
search engine can give you that and more, and better yet, it is very
inexpensive and doesn't require any additional resources from your site
host. You can see some of its benefits by using the WordCruncher Search
Engine Demo at wordcruncher.com. This demo does not currently
search the entire Internet, but is a demonstration of a new concept for
presenting search results. Wide-based Internet searching will be available
early in 1999. WordCruncher's new search engine will save time and money by
providing simple yet advanced features that allow internet users to find
the information they need in record time.
Other WordCruncher Products: WCTI offers WordCruncher Publisher which has
been used in academic research and specialized publishing applications for
over a decade. This product is not yet Internet based, but it provides
solutions that cannot be found elsewhere for those specialized research and
publishing applications. In addition to WordCruncher Publisher, WCTI offers
a couple of CD-ROM content products.
- WordCruncher Publisher at wordcruncher.com,
- WordCruncher Texts on CD-ROM at wordcruncher.com,
and
- WordCruncher Whew at
wordcruncher.com.
What sets WordCruncher apart from other search engines? In response to a
search request, the typical Internet search engine provides a list of sites
that might contain information relevant to your search along with very
brief summaries of the content on those sites. Often that list is quite
lengthy, and as a user, you are forced into a slow and frustrating process
of trial and error as you must look at each of the sites individually to
determine if they contain anything useful.
WordCruncher, on the other hand, has developed a new and vastly improved
model for representing search results. As you can see in their demo, on one
portion of the screen, you will see the equivalent of a table of contents.
Each entry in the table of contents represents an Internet site or page,
and it shows you how many references match your search criteria on each
site or page. Clicking on an entry in the table of contents will show you
the search results with the actual surrounding context; in other words,
"hits-in-context." With this display, you can instantly see if a site
provides the information you want without having to go to the site first.
This approach saves you time, eliminates frustration, and steers you into
better information. This is one of the major advantages of their innovative
search over the other leading search engines.
Key Management:
M. Daniel Lunt, President and CEO - Mr. Lunt is a 17-year veteran of the
computer software industry. His most notable success was at
WordPerfect Corporation as Vice President of Worldwide Marketing
(1983-1993), where his management of the marketing, sales and support
division drove them from relative obscurity to half a billion dollars in
annual sales. Under his direction, the customer support operation became
the standard by which all other support operations were judged.
James W. Johnston, Executive Vice President - Mr. Johnston provides 15
years of expertise in all essential aspects of content presentation,
analysis software, and electronic publishing. Through his firm, Johnston &
Company, he has published many electronic texts using WordCruncher
technology. His clients include The Winston S. Churchill Family Trust, the
University of Southampton (UK), and Thiokol Corporation.
Kenneth W. Bell, Chief Financial Officer - Mr. Bell has nearly 25 years
experience in a variety of finance and management positions. He was a
commercial banker for 15 years prior to becoming Vice President and
Treasurer of Bonneville Corporation in 1986. Since 1990, Mr. Bell has
served as President of Kelmarc Corporation, a financial and management
advisory company. During his career, Mr. Bell has participated in financial
transactions in excess of $500 million, including initial and secondary
offerings.
Timothy J. Riker, Vice President, Technology - Mr. Riker has held a
variety of software development positions including two previous posts as
Vice President of Development. Most recently, he had responsibility for
many facets of the network systems and applications (both Internet and
Intranet) at SilverPlatter Information, Inc., in Norwood, Massachusetts,
and played a significant role in improving both the functionality and
reliability of their systems. He has extensive experience in search engine
design and implementation, Internet applications design and implementation,
content publishing, and in supporting the broad range of platforms
currently present on the Internet.
Peter T. Stoop, Vice President, Sales and Marketing - Mr. Stoop has over
14 years of diverse management experience, including 9 years at Data
General Corporation, WordPerfect Corporation and Novell, Inc. He has held a
variety of senior-level management positions in Marketing, Strategic
Planning, and Business Development. Mr. Stoop
holds an MBA in Marketing from the University of Rochester's Simon School
of Business Administration.
Technology Background: In the early 1980's, Dr. Monte Shelley, an
educational psychologist, and several professors and research scholars at
Brigham Young University began to architect a software product that would
assist them with their research and teaching efforts. Based on clearly
defined research and instructional objectives, they created a revolutionary
product that generated a detailed index of documents of almost any size.
This index, a sort of comprehensive "electronic road map," included the
exact location of each word and its relationship to other words and
phrases. Full text retrieval, logical connectors, frequency distribution,
and collocation were essential components for meeting their research
specifications. Because they worked with scholars from around the world,
multiple language support was imperative and designed as an integral part
of the software.
The resulting effort was entitled WordCruncher®, and its evolution
continues today. For over a decade, WordCruncher has been successfully used
as a research tool at universities and institutions in more than thirty
countries. Now, as the Internet has become a real force in so many of our
lives, the WordCruncher search engine is uniquely capable of solving many
of the information retrieval problems that we face.
Early in 1998, WCTI assembled the team and resources necessary to adapt the
WordCruncher technology to the Internet. A new and innovative model
representing search results on-screen was developed and a server version
that could be accessed by an HTML browser was created. Today, WordCruncher
for the Internet promises to set a new standard for finding relevant
information on the Internet.
History of the Company: In 1996, James W. Johnston and M. Daniel Lunt
founded a new company with the intent of bringing WordCruncher technology
to a wider audience. They recognized that the explosive growth of available
information especially through the Internet, would make search technology
an increasingly important tool for computer users. This vision has been
verified by studies that show that searching is the most popular activity
on the Internet.
After reaching an agreement with Brigham Young University, WCTI assumed
control of the WordCruncher technology along with an associated patent, and
commenced work on their development objectives. Additional expertise was
acquired in key technology areas, and a new and innovative model for
representing search results through an HTML browser was created.
WCTI's vision of improving how we find useful information on the Internet
had now taken shape, and they turned their attention to the development of
a business model that would make the vision profitable. Upon reviewing the
models used by other search engine companies, it became apparent that those
models that depend entirely on advertising revenues have not been wildly
successful. WCTI recognized an opportunity to create a revenue/business
model that would not only generate multiple revenue streams but would also
enhance the advertising revenue stream. To some extent, this business model
is enabled by WCTI's unique technology model, but it also draws on tried
and true business principles. The net effect is that WCTI is positioned to
become a major player in the Internet arena for many years to come.
At this point, the only thing lacking for a successful implementation of
the plan was funding to move forward. In July of 1998, WCTI secured funding
commitments sufficient to finish the development of the product and to
implement the business plan and market launch. The development is now
preceding on schedule and the first release of the search engine will occur
in the first quarter of 1999.
Recent Media Coverage: WordCruncher has recently been featured by the
following noteworthy media coverage to increase the public's awareness of
the WordCruncher search product:
- Wall Street Reporter with Michael Wachs on the Internet at
stock-line.com
- CNBC's "Investing in America", October 24, 1998
- Discovery Expo in New York City
- Investor's Business Daily
Press Releases:
12/01/98 - WordCruncher Internet Technologies, Inc. Interview with
Wall Street Reporter Available on the Internet
11/17/98 - WordCruncher Internet Technologies Confirms First Quarter
Rollout of Internet Search Engine
10/14/98 - WordCruncher Internet to Feature Search Engine at New York
City Discovery Expo October 20th, Will Appear on CNBC
October 24th
10/05/98 - WordCruncher Internet Shows First Look at Internet Search
Engine
09/09/98 - WordCruncher Internet Technologies Adds Internet Pioneer to
Board of Directors
08/20/98 - WordCruncher Internet Technologies, Inc. Announces "The New
Wave in Search Technology"
08/13/98 - Wordcruncher Internet Technologies adds VP of Technology
08/06/98 - WordCruncher Poised to Lead the Way in Search Technology
08/03/98 - Is History Repeating Itself?
07/28/98 - WordCruncher's Search Engine Receives Financing
07/24/98 - WordCruncher Internet Technologies, Inc. Completes Reverse
Merger with Dunamis, Inc.
07/21/98 - WordCruncher Internet The Newest Search Engine Technology
To Trade Public
02/23/98 - WHEW! Takes Pain Out of Searching Personal E-Mail;
WordCruncher's E-Mail Warehousing & Search System Available for
$9.95
02/03/98 - WordCruncher Negotiations Continue with Three Undisclosed
Parties; Utah-Based Firm Rejects Acquisition Offer as
Discussions Continue
01/20/98 - WordCruncher Makes High-Tech History with First Technology
Auction: Groundhog Day Auction Will Award Exclusive
Internet Search-Engine License to Highest Bidder
Corporate Financials:
Financial Data
Exchange Listed NASDAQ OTC: WCTI
Shares Outstanding ~ 11.8 million
Shares Float ~ 4 million
Shares Restricted (mostly company owned) ~ 7.3 million
Market Capitalization ~ $38 million
52-week Range $0.687 (low)- $5.0 (high)
Recent Price $3 1/8 (bid) - 3 3/16 (ask)
Industry Internet Services
Technical Analysis
Based on the technical position, we believe WordCruncher has the potential
to appreciate to unprecedented levels in stock price in the year to come.
WordCruncher had an IPO on July 24, 1998, and began trading as an OTC
Bulletin Board stock. It opened at $5/8 and rapidly surged to $5 in a
couple of trading days. Its 52-week high is $5 and 52-week low is $0.687.
After this initial surge the stock settled back in price as most IPOs do.
Throughout the last two months, heavy volume has been experienced. For the
past three weeks the amount of shares traded represents about $200K to
$900K per day. This is
interpreted as an accumulation/consolidation phase of development prior to
a significant upward trend. This amount of trading exceeds the activity
experienced by the major search engines in their initial stages of trading.
This high volume reflects investors' insight for the potential of
WordCruncher as a future leader in the explosive Internet industry.
PennyStock Picks believes the Company is today undiscovered, undervalued,
and has tremendous potential to appreciate in price throughout the year
1999. We feel the stock is currently at a very favorable buying price and
is also an excellent long-term investment opportunity. Investing in this
company involves some short-term risk due to tax-loss selling pressure in
the overall market and Bulletin Board companies are prone to decline in
December. However, we feel Wordcruncher can weather the storm and any
selling pressure will be very minimal. Our best judgement of the short-term
(three months) target price is $7 (~ 120% higher than today's prices), and
a conservative long-term (6 months to 1 year) target price of $20 to 25
(~ 600% higher).
Conclusion
WCTI has developed a new Internet search engine with higher sophistication,
innovative technologies and numerous advantages over existing and leading
search engines of today. The Company plans to launch the commercial release
of their new search engine in mid-February 1999. Currently, they are
familiarizing the public with the advantages of the search engine through
the use of their demo. Public awareness is also obtained through media
coverage (i.e., TV and radio broadcasts, Internet exposure, expositions,
publications and research reports).
Dramatic improvements in methods of data collection through their spidering
system, speed of collection, and representation of
information will not only be useful and advantageous for existing Internet
users, but for the millions of new users projected to
enter the market over the next several years. Research through IBM projects
450 million new users by the end of 2001, meaning about 80% of the market
doesn't exist yet. Providing new and easier methods to search and
comprehend data is the key to success in the search engine market. The
introduction of their new search engine has the capability to become not
only successful in today's markets, but well positioned for dramatic growth
and as a future leader in the explosive Internet industry. In addition, no
other search engine is capable of performing multi-lingual searches and
translations. This is a future product of the Company that is currently
being developed and once perfected and released, has the potential to
revolutionize the Internet industry.
Corporate Contacts:
Company:
WordCruncher Internet Technologies, Inc.
Daniel Lunt, President & CEO
50 West Canyon Crest Rd, Alpine, UT 84004
E-mail: mailto:admin@wordcruncher.com
Tel: (801) 756-8833, Fax: (801) 756-8188
Website: wordcruncher.com
Investor Relations:
Columbia Financial Group, Inc.
1301 York Road, Suite B400
Luthererville, MD 21093
Tel: (888) 301-6271
Fax: (410) 321-1753
Web Site: cfgstocks.com
A Fax-Blast will be distributed to numerous stock brokers in the U.S.
beginning December 7, 1998!
Disclaimer
© 1998 PennyStock Picks. All materials presented on our web site and
individual reports released to the public are not to be regarded as
investment advice and are only for informative purposes. Before making a
purchase or sale of any securities featured on our web site or mentioned in
our reports, we strongly encourage and recommend consultation with a
registered securities representative. This is not to be construed as a
solicitation to buy or sell securities. As with any penny stock, companies
we select as our stock picks involve a high degree of investment risk and
volatility. All investors are cautioned that they may lose all or a portion
of their investment if
decide to make a purchase in any of our stock picks.
It should be understood that there is no guarantee past performance will be
indicative of future results. The accuracy or completeness of the
information on our web site or within our reports is only as reliable as
the sources they were obtained from. PennyStock Picks may hold positions in
securities mentioned herein, and may make purchases or sales in such
securities featured on our web site or within our reports. In order to be
in full compliance with the Securities Act of 1933, Section 17(b),
PennyStock Picks received a modest fee of 1,000
free trading common shares of WCTI from the Company as compensation for its
efforts in research, presenting, and disseminating this information.
Management of PennyStock Picks will not sell any shares of WCTI received
from the Company prior to archival of their report. For more information,
please read our company background and compliance information at:
pennystockpicks.com, and compensation
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