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Microcap & Penny Stocks : THNS - Technest Holdings (Prev. FNTN) -- Ignore unavailable to you. Want to Upgrade?

To: Bill Fortune III who wrote (11718)	4/5/1999 4:09:00 AM
From: TechnoWiz	Read Replies (3) \| Respond to of 15313

Good Morning Bill: Happy Easter to you all. Since we have an important anniversary upcoming soon in FNTN in the month of April, ie. the first major blast off along with the first wave of Internet explosions, I thought it might be worth reflecting where we have come from and where we are today and where we might go in the future. One year ago I asked the question: Is FNTN the most undervalued Net Asset? Today, I ask the same question again and say to you: Decide for yourselves. They're your own shares. If you give them up too cheaply, you've only yourself to answer to. As I have said before, it only takes some event or catalyst to change everything in this issue. For an Internet stock at these prices, with so much going for it, I believe we deserve better. Just look back again and see what happened to PronetLink a few weeks ago on just one announcement. Pity the poor folks who sold at 75c. How many times it has happened to this one on the dips? Seems to somehow always come back each time. FNTN is a very different company today than where it was a year ago, in fact it could be argued that today you are potentially getting 5 companies in one by investing in FNTN. When one compares the valuations of these 5 hybrids compared with other companies, FNTN looks highly compelling and grossly undervalued, especially in light of last week's buyout of Broadcast.com. Here's what the breakdown looks to me. 1. An Internet Video provider and Video Domain Hoster. With arguably the highest quality video available on the Internet, this has to be an extremely valuable resource in today's rapidly emerging Internet video mania. Let's be really conservative and mean with this valuation: 1% of Broadcast.com = $57 Million 10% of most other meagre competitors or wannabee's: $50 - $100 Million. 2. Internet Website and Presence: Anything goes here - Pronetlink seems fair competition - 36 million shares - Valuation $100 Million plus - Multex.com which does not even have its own quote feed and proprietary charts: Around $1.1 Billion. Does FNTN deserve 10% of that? I think so. Its site offers at least 10% of the info and there's supposed to be a lot more still to come: $100 Million. 3. Proprietary Intranet network and Intranet provider, incorporating Data Warehousing and Data Management with potentially no limits: Well this one is a bit hard to value but since it could be a formidable competitor going forward. Let's award it a reasonable valuation alongside its few competitors with say just 10% - 15% of their insane money losing valuations: $50 Million 4. Enhanced communications: As Long Distance and International carrier and other services as provided through Financial Telecom as well as providing high speed Internet Access for its corporate clients Financial Intranet deserves a reasonable valuation for an important component of its overall business model. Based on other bloated valuations of other money losing telcos and seeing as FNTN will according to management be operationally profitable by years end, let's give this a valuation of 25% of its closest competitors: $20 Million, though it could be worth more. 5. Distance learning: This is the wild card. But given the potential of the fast food chain deal and all of the possibilities involved in education, knowledge building, Data Warehousing, Distance learning and motivational dynamics involving one of the World's fastest growing businesses: International Franchising - The possibilities seem endless, not to mention that this whole arena has been estimated to be worth some $50 Billion by the turn of the Century. Could this division be worth 0.1% of this potential: $50 Million? Ok. That's five possible Divisions with a potential total valuation of $277 Million and let's remember these are incredibly 'lean' valuations when compared with what is going on out there today. All we need to add to that now is management to concentrate real hard on delivering shareholder value and we soon could be well on our way there... Finally: Throw in a decent Search Engine with emphasis on Financial Research and you've got yourself one impressively poised company by any measure. Since it seems anything goes when it comes to Search Engines, with utter trash or a bunch of fancy links thrown together starting at around $50 Million and ranging all the way to $500 Million and on into the Multi-Billions for the big boys, I think we can settle on $25 Million to round things out and put us over the top at a very conservative $302 Million. That equates to a share price of around $14.5. Even if we cut that by 80% again, being really mean to ourselves, it gives us a much fairer value than present of close to $3.00. Then if you include the fact that FNTN is close to full reporting status and possibly Nasdaq listing may not be far off, then one could easily envisage a new value that would help make all of these things possible. Not counting of course all we don't yet know of. Remember, we are now 20 months into this elongated megabase with projected geometric progressions easily extending well into double digits. I would not underestimate the power of a technical breakout beyond these levels. Maybe a more just and rightful value will sooner or later be finally realized. A breakout above 1.40 could be exceedingly bullish for starters Just trying to make some sense of it all Have a great week Rgds Wiz