Non-Tech
|
|
Web Capital Group (WBCG), mini-CMGI
|
| An SI Board Since December 1999 |
| Posts |
SubjectMarks |
Bans |
Symbol |
| 15 |
3 |
0
|
WBCG |
|
With the proven success of the "big boys" in internet venture capital - Japan's Softbank (one of our huge winners) and CMGI - it is not surprising to see many small companies try to emulate the business model. Very few, however, have been able to show concrete results, falling short on one of the three key counts: capital, an "eye" for unique web-business models and liquidity. Web Capital Group (WBCG) has a proven track record in the field, a new name focusing on its core business, a couple of spin-offs under its belt and an expanded incubator strategy. The future's so bright they gotta wear shades...
Until today, the company was known as Sara Hallitex (SHAL), which sounds like a woman with bad breath. SHAL had a tough year as the stock spiked up to 20 early in the year and then drifted all the way down to 2 1/2. However, the stock made a remarkable turn-around over the last 2 weeks, bouncing off the bottom on significant volume. It actually jumped from 3 to 4 in one day last week, after announcing the establishment of the Company's initial internet incubator venture. With the name change, the upcoming series of press releases and spin-offs and the market's interest in viable web portfolio plays, the minimum expectation is for the stock to surpass its August-September peaks around 7 and to trade up to the teens again.
Web Capital has four public subsidiaries: USLab.com (ULAB,3 1/4,BB), SolutionNet Int'l (SLNN,4 1/2,BB), Tril-MediaNet.com (TMDNE,4 1/4,BB) and Janus International (JNUSE,80c,BB) - the latter two just filed their 10-SB and should have their E removed shortly. Another spin-off is on the way, theMovieSource.com, an e-tailer of filmed entertainment. In addition, SiliconLosAngeles.com, the first of five planned global incubator units, will operate as a comprehensive, fully integrated e-commerce aggregator in identifying, creating and operating Internet opportunities. SiliconLA.com will supply emerging growth Internet-based companies and projects with a full range of resources to infuse these companies with the development strategies and financial support needed to rapidly introduce innovative products and services. The company is acquiring a 50,000 sq. ft. building in Marina del Rey, CA for $10 million, which will serve as the base for this new West Coast high tech internet incubator facility, whose grand opening should come in February. The Company is also negotiating to establish similar incubator facilities in Europe, Japan and Hong Kong.
Importantly, Sara Hallitex's old "venture banking" operations have been merged with FutureVest.com (formerly RL Securities), a company that will be active in all aspects of e-finance. "FutureVest.com will offer a full range of investment banking services, assuming the duties of i-Manager underwriting and distribution of syndicated IPO's". Web Capital "and its operating subsidiaries, including SaraOnline.com, Inc., will supply initial guaranteed "deal flow' from its Venture Capital and incubation operations, providing FutureVest.com with a steady stream of new, emerging growth companies ready for their IPO's." In other words, owners of this stock can look forward to sharing the bounty of the whole portfolio, as it evolves.
The whole corporate structure is complex, and it's evolving every day, but you can keep score from WBCG's website www.SaraHallitex Corp.com. The parent company has about 9M shares O/S and about 20% are in the public float, so it won't take much to make the stock move up nicely. Stocks like this, such as the smaller Tianrong conglomerate, usually do very well in the market. WBCG looks like a keeper.
|
