A Hidden Gem OR Just another Company ?

 
iansinger on Sun, September 19, 2004 2:05 PM
A Hidden Gem OR Just another Company ?

Let me introduce you to Searchguy.com (OTC: SHGY), one of the newest and most innovative search engines on the net today...

If you were offered the chance to buy Google.com or Yahoo at .50 cents, would you jump on the opportunity? Well, SHGY is presenting that exact opportunity to investors... Do a direct comparison between Searchguy.com and Google.com , Yahoo.com , or Askjeeves.com ( All billion dollar market cap stocks) and see how the results differ. Most of the time you will see you get much better search results with Searchguy.com ...This is a ground floor opportunity to purchase what may be the direct competition to Google.com in the VERY near future.

Google.com‘s Recent 2.3 billion dollar initial public offering has brought it to a staggering 31 billion dollar market cap and a whopping Price Earnings ratio of 160. ! Yahoo.com is currently trading with a 45 billion dollar Market cap and a Price to Earnings ratio of 131, Even MAMA.com an underachieving search engine with an income of only 1.2 million dollars is trading with a Price Earnings ratio of 57 , and if a company like Looksmart.com Who is losing 5 million dollars a year net can have a 170 million dollar market cap I believe that no matter how good or bad Searchguy.com’s financials will be the hype factor surrounding these stocks should bring its market cap to 100 million$ which would be 2$ a share. This is also a very conservative estimate because if and when this search engine were to get widespread usage, I believe we could see a spike to as high 3-4$ within the next few months.

Some Important Points to Consider (most information provided by the company)

* No debt – The company is fully financed by private investors as Google was in its early stages and does not need any financing for at least the next 12 months ( note this is where most bulletin board and pink sheet companies fail in their share price , because their development stage status and need for financing brings the wrong kind of financiers to the table who just seek a maximum return on their investment within the shortest amount of time).
* Enough cash to at least till September of 05 without the need to access debt or additional equity (Low Cash Burn Rate).
* Generating Revenue + cash flow positive ("We can exist and make a profit on what we already have in our client base").
* Audit currently undergoing, anticipated to be completed by Jan/Feb
* NO Risk of Dilution
* O/S 50mM: Was Just DECREASED by a cancellation of 50 million shares by the company.
* Float 14M: Free Float in Strong Hands; most % of the Float controlled by Insiders who aren’t selling.
* Breakthrough technology that will make Searchguy.com access-able from mobile phones and PDA''s.
* Geographical expansion into other continents (Japan, UK, Spain, Italy…)
* Hot Sector: With the Google.com IPO that just happened and the overall momentum and hype in the Search Engine Sector, Searchguy.com is a company that is set to benefit from the upcoming
* Institutional Support (several speculative hedge funds accumulating it)
* Toolbar V2.0: The launch of this updated version of the Searchguy.com application is going to have a built in Firewall and Spy-ware detector.
* Exposure: With the recent launch of the National Advertising campaign , Searchguy.com is investing in its future by spending money on exposure.

Remove the Word Dilution from SHGY dictionary
The Company has received several calls from large investors and some institutions asking for shares. The Company has stated again and again, that Insiders aren’t interested in selling any stock (source: Investor Relations)

Email from Searchguy.com Investor Relations answering a request to buy a large Block of Shares from them…

From: "investor@searchguy.com" <investor@searchguy.com>
To: <xxxxxxxx@hotmail.com>
Subject: Investors Kit
Date: Tue, 29 Jun 2004 03:46:45 +0000 (GMT)

Thanks for your call today, it was a pleasure speaking with you. Find attached
the preliminary version of the investors kit.

Regarding your earlier question, the company does not have shares for sale.
Management is very concerned about causing any dilution or harmful effect on its underlying shares.

Sincerely,
Derek Leviaton
Investor Relations for SearchGuy.com, Inc.
http://www.searchguy.com

INVESTOR KIT
http://www.searchguy.com/investors/investorkit.pdf

In conclusion I believe that after reviewing the FACTS, It might be that the other Search Engines are just plain overvalued or maybe Searchguy.com is just undervalued , as an investor I feel the equilibrium will need to be met and it doesn’t look like Yahoo.com or Google.com are coming down anytime soon. So I say SHGY is a HIDDEN GEM.

This Post is the sole opinion of the poster and should not be constituted as investment advice , It is purely an informational post to portray the inefficiencies in the public stock markets. Always consult a professional before making a decision in the stock market.

Replies:

ffytty01 on Sun, September 19, 2004 7:24 PM
SearchGuy seems a little slower than Google but the preview and history thing seems kind of cool... the first time, then it just feels like a wannabe but not quite Google.

You're comparing prices during an over inflated .com boom. Google and Yahoo! have significant assets and revenues beyond being able to stay afloat for just one year. I think SearchGuy has about as big of a change of taking them on as Virgin Cola did with Coke and Pepsi.

In conclusion I don’t think SearchGuy is undervalued at all, and as an investor I think the equilibrium has already been met.

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On 9/19/2004 2:05:14 PM, stockscouter wrote:
This Post is the sole opinion of the poster and should not be constituted as investment advice , It is purely an informational post to portray the inefficiencies in the public stock markets. Always consult a professional before making a decision in the stock market.
----------------

ditto
spiraleye on Sat, September 25, 2004 8:01 PM
To give this thread a little balance... here are some negatives from an investor's perspective:

Here is the stock's chart (link).

The stock is an OTC pink sheet. (It is not a listed NASDAQ company, but it can be traded over NASDAQ's electronic network.) What is OTC, you ask? OTC stocks are stocks which do not trade on a recognized stock exchange, but trade in one of several so-called over-the-counter markets. It is a somewhat less formal, more risky way to trade stocks. There are no "listing" rules, and OTC markets can also be highly manipulated.

To date, SearchGuy.com has not made any SEC filings (i.e., no quarterly reports, proxies, or insider trading information).

(The latest issue of Canadian Business Magazine has a rather informative article, "Our dirty secret" (link), on these over-the-counter markets. It called the "OTC Bulletin Board in the United States, the rathole of North American equity markets.")

The power of Google is in their technology, innovation, and branding. My 2 y.o. nephew sees the Google logo, and he says, "Google".
rfaraone on Sun, September 26, 2004 10:47 PM
A Hidden Gem OR Just another Company ?

I am thanking you for bringing this search engine company to my attention.

I accidentally found out that my own web site (www.giftedwriting.com) is listed by them as Number #1 under a keyword search, "Professional Writing, Editing, Proofreading"!

(I was dumped by Google a few months ago and they still have not responded to my inquiries as to why - this was discussed at TechVibes' Forum by other web site owners who had similar problems - although I am still listed in the top 20 by others - MSN, AltaVista, etc.).

Best wishes for success!

Cordially,
Nina M. Sherwood
www.giftedwriting.com
www.websitewrite.com
smckay2000 on Mon, July 2, 2007 12:41 PM
In early 2007, SearchGuy.com was acquired by a successful entrepreneur in Mexico. Along with vast management changes, the technology of the company has been radically upgraded. The SearchGuy.com META search engine has become instrumental. it works like a tool. Plus, the company's Spanish division is currently being over-hauled and will soon be relaunched as Busctodo.com. The company also announced the cancellation dept and the reduction of float by 50%. And not to over look the company's up coming transition over to the NASDAQ OTC:BB by mid 2007. So, why search for one- when you can have: SearchGuy.com- all of them?