Alert VWPT valuation 1.37
below is the article....
Check this out and decide Disclosure I am in today @ .81.
Taking A Different Viewpoint
We'd like to thank one of our astute readers for suggesting
Viewpoint
(VWPT) as a possible buyout candidate. At the time we first looked
at
Viewpoint the shares were trading in the $0.70-$0.75 cents range but
zoomed to a high of $1.20 per share in no time. It didn't look like
the company would make the buyout basket because of its price
appreciation but now that it has pulled back to Friday's close of
$0.80 per share this opportunity looks enticing again.
Viewpoint provides interactive media technologies and digital
content
creation services for Website marketing, online advertising and
embedded applications. The company's technology enables websites and
other media publishers to integrate many interactive graphics media
technologies onto regular Web pages or other digital formats.
Viewpoint was actively involved in the development of major features
and enhancements to the AOL service like AOL® Instant Greetings, and
SuperBuddy icons, which will be a feature of the forthcoming AOL®
9.0
Optimized software release. Its client list is very impressive with
a
roster of Fortune 500 companies.
Macromedia (MACR) is the quintessential 500lb gorilla of this
industry with Viewpoint being a minor player with revenues of $18
million in 2002 and on tap to do about the same this year. Compare
this to Macromedia that did over $336 million last year in revenues
and has a $1.69 billion dollar market cap. Friday's closing price of
$0.80 per share puts Viewpoint's market cap at $36.79 million
dollars.
Could Viewpoint be putting itself up for sale? The company has made
a
few moves that may signal something big is on the horizon. On August
8th a new chief financial officer was announced (press release) and
three days later a new chief executive officer was appointed (press
release). The new management team shook things up immediately
through
a corporate restructuring whereby 20 positions, 50% of which were
senior positions of vice president or higher were eliminated.
There is $7.2 million in cash and cash equivalents in the bank but
also $6.2 million in long term debt obligations. Ample cash is
available to service the debt so insolvency is not an immediate
concern. The share structure of the company suggests that if an
offer
were made to buy the company there would not be lots of opposition.
42% of the company is owned by institutions and mutual funds while
insiders hold 11%. There is lots of incentive for both large
shareholder and management to get a deal done. Macromedia currently
trades at 4.82 times sales while Viewpoint is valued at 2.2 times
sales. If we take the average of the two we get 3.51 which would
give
Viewpoint a market valuation of approximately $63.18 million or
$1.37
per share.
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