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Technology Stocks : Navigant International (FLYR) -- Ignore unavailable to you. Want to Upgrade?

To: Henry who wrote (469)	2/24/1999 5:08:00 PM
From: Rob S.	Respond to of 725

Lack of interest is right. Particularly in this nervous market that is unfavorable to small cap stocks. However, the company made analysts well aware that there would be a one-time write-off this quarter. There were no surprises there except for investors who might have been unaware of this. The write-off does increase nervousness and it raises questions about whether the company can continue on the acquisition roll-up strategy. The industry is in the process of consolidation. Navigant said that they are getting swamped with acquisition targets to look at and that several attractive deals are possible. To continue or increase the pace of acquisition, the company must secure additional financing. They have meetings scheduled with investment bankers and are very likely to have this wrapped up in the near future. That will both be a relief to liquidity concerns and it will signal a new phase of growth is likely. Internal growth is only around 5%. The stock is valued cheap enough now that a slow down in acquisitions can be tolerated but it's clear that internal growth rates won't make this stock a barn-burner. I think the stock has reacted to this current scenario - and the financing will be a nice step forward. I don't expect this stock to take off much past 7 or 8 even after that is in place and acquisition goals are confirmed. It will take better web site promotion and better communication to the investment community to get the stock to higher valuation.

To: Henry who wrote (469)	2/24/1999 5:27:00 PM
From: Lane Hall-Witt	Read Replies (1) \| Respond to of 725

This information was in the earlier reports and I'm sure was factored in long ago. FLYR has been up front for months (read the transcript for last quarter's conference call, for example) about the charge, which is a non-recurring charge to add back-end efficiencies and integrate acquired companies. The problem with this article is that it does not include a footnote explaining the charges, as other financial charts have. The lack of immediate interest is disappointing, but we can take heart in the fact that we're holding a growing company that is undervalued by any standard valuation measures. Also, there are more "catalyst" events on the near-term horizon: ongoing ramp-up of Internet strategy (with announcements forthcoming as development goals are met) and the process of expanding the credit line and making acquisitions. Despite the price action the past couple of days, I don't see any reason to lose confidence in the company and its prospects.