KowaBunga! Inc fka KOW (KOW)

[bohemianclubman]

BO-MAN bashing -

I feel certain that I will have the last laugh. I gotta love the bashing, I don't think that they, or he.....how about it, would knock every word that I say unless they believe that I'm probably dead on...

There is a new show on TV called numbers. It's premise is that EVERYTHING can be determined by use of mathematics. I sort of believe that. How about these numbers - THK grew 800% last year. Mr. Jacobs has said that this year will come in at .20 to .25 for a 100 to 150% growth rate. Many hyper growth stocks garner a P/E as high as their EG. If we get half the P/E of our earnings growth we would sell at a P/E of 50 to 75. We can all do the math, but I assure you that it is a two digit number!!! On top of that soon we will be half way through this year and talk will turn to '06, with the acquisitions going on, and every acquired company being a growth engine, I'm willing to bet that the numbers will continue to go up, up, up....

Now what kmikey, or where-is-my-money will do is post this post over on RB and rip it to shreds....I gotta love it!

Bo

[bok-bok]

Sure is a lot of BO-MAN bashing going on RB board. Bo will have last and longest laugh when this stock turns!! Kmiker-Son-of -Sam -Show-Me-The-Money-Alan-and a few more handles he uses have no one fooled! Why would anyone spend this much time on a board of a stock he hates? Just something to THK about. The ChickenMan. By the way,do you know why the chicken is dumbest animal in the world? Its the only one that eats with Its pecker!

[bckinblk]

Look like we will be seeing first quarter results this week. IMO

[bohemianclubman]

CoolGuy -

When I say that I think that I get it, I'm not talking about the current share price, I'm referring to the long term value this company is building for shareholders.

The current share price reflects a miss in the fourth quarter, Pat Martin being ambushed on Mad Money with Jim Cramer, and a very weak group (take a look at FWHT).

The entire negative momentum can begin to shift rather dramatically if the company posts solid first quarter results. We will see very shortly.

Bo

[ChiTea]

Bo,

I understand. It'll be worth your while.

ChiTea

[coolguy]

Perhaps you would like to share with the rest of us what were missing. As I see it some one is selling a ton of stock in the 3.30 -3.35 range and then looking to cover a lot lower. If good news is truly imminent then these shorts will get crushed. If not then we will have another oppurtunity to buy in the sub $3 level again.

[bohemianclubman]

ChiTea -

I just got home from an all day seminar and I have another tomorrow. Tonight I have a very important meeting. I'm looking forward to replying to you, but I guess that looking at my schedule it won't be until this weekend. I really believe that I do "get it". Lately I've sometimes felt like nobody else does.

Bo

[abh3vt]

Well, I'll admit to buying some as it dropped from 3.25 down to 2.85.....I was hoping to accumulate a lot more at 2.80 - 2.85 but ran out of time.

[coolguy]

Unless this rally is just simply short covering, someone must know something I dont. For two days now there has been strong bid activity. Hopefully we are suprised when earnings are released this q.

[ChiTea]

I don't have premium service either, but I can help you connect with him. Please drop me a contact number for you at [e-mail] and I'll respond. I like your analysis of this stock and I think you "get it" as to what's going on.

[coolguy]

Anyone have any indication for 1st quarter #'s or when they might
be released? Seems like investors are getting a little impatient.

[bohemianclubman]

I don't have the premium service

which apparently lets you send private messages. No, I never did speak with Mr. Jacobs.

[ChiTea]

Did you ever make contact with Jacobs? Would you like some help? Send me a private post so I contact you and set it up.

[abh3vt]

Interactive Advertising Revenues Grow Nearly 33% as 2004 Totals $9.6 Billion
Thursday April 28, 11:55 am ET
Fourth Quarter of 2004 Marks the Highest Ever Quarter of Revenue Reported


NEW YORK--(BUSINESS WIRE)--April 28, 2005--The Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) today released the Internet Advertising Revenue Report including final numbers for Q3, Q4 and full-year 2004. The report states that Search, Classifieds, Display and Rich Media continue to grow at a healthy rate. Overall industry revenues rose nearly 33 percent over 2003 totaling over $9.6 billion and exceeded the previous revenue record in 2000 by nearly 20 percent. Q4 2004 revenues totaled a record $2.69 billion, marking the highest quarter ever reported.
"Interactive Advertising has clearly become a mainstream medium and one that can no longer be ignored as a critical piece of any marketing mix," said Greg Stuart, president and CEO of the IAB. "The PwC 2004 reported figures indicate that Interactive is firing on all cylinders including display, search and classifieds and is squarely on track to surpass consumer magazine revenues."

Consumer advertisers continue to represent the largest category of advertisers accounting for 49 percent of the 2004 annual revenues, up significantly from the 37 percent reported for the same period in 2003. The largest sub-categories under the consumer umbrella include retail, automotive, leisure, entertainment and packaged goods. As a percent of 2004 total revenues, Computing and Financial Services account for 18 percent and 17 percent respectively, with Telecommunications and Pharmaceutical & Healthcare rounding out the total at 4 percent and 6 percent respectively.

"The increased adoption of Broadband will continue to evolve the face of Interactive Advertising as more compelling media ads and video formats are created," notes Tom Hyland, Partner, PricewaterhouseCoopers. "More and more, brand marketers will look to interactive as an integral platform to deliver rich experiences for brand building and enhancement."

"The revenue results reported for 2004 confirm a very healthy environment for online advertising, for both direct marketers seeking immediate performance results, as well as brand advertisers looking to create or enhance an image, product or service, said Pete Petrusky, Director, Advisory Services, PricewaterhouseCoopers. "Moreover, the Internet is the only medium to adopt a global standard for impression measurement, intended to simplify the buying and selling process for online advertising."

A copy of the full report is available for download at http://www.iab.net/2004adrevenues. The IAB sponsors the Internet Advertising Revenue Report, which is conducted independently by the New Media Group of PwC. The full report is issued twice yearly for full and half-year data, and top-line quarterly figures are issued for the first and third quarters.

This year's report contains breakouts detailing the performance of particular industry categories:

Ad Formats - Internet ad revenues broken down by ad formats for
the 2004 full year revenue are:

2004 (Ttl = $9,626M) 2003 (Ttl = $7,267M)
--------------------- ---------------------
% of share % of share
Type of Advertising $ of market $ of market
------------------ ---------------------
Display Advertising 1,829 19% 1,526 21%
Sponsorship 770 8% 727 10%
Slotting Fees 193 2% 218 3%
Rich Media 963 10% 727 10%
------------------- ---------------------
All Display $ 3,754 39% $ 3,197 44%
=================== =====================
Search 3,850 40% 2,543 35%
Classifieds 1,733 18% 1,235 17%
E-mail 96 1% 218 3%
Referrals 193 2% 73 1%
------------------- ---------------------
Totals $ 9,626 100% $ 7,267 100%

Ad Categories - In 2004, consumer advertisers continued to lead
the way in online advertising spending accounting for 49% of total
revenues. The top five in this segment are:

2004 2003
---------- ---------
Consumer 49% 37%
Computing 18% 20%
Financial Services 17% 12%
Pharma & Healthcare 6% 4%
Telecom 4% 4%

Pricing Models - While CPM pricing continues to be the predominant
choice for buyers and sellers, growth in performance-based deals
continued in 2004.
2004 2003
---------- ---------
CPM/Impression 42% 43%
Performance-based 41% 37%
Hybrid 17% 20%

Conducted by the New Media Group of PricewaterhouseCoopers the "Advertising Revenue Report" was started by the IAB in 1996, and represents data from all companies that report meaningful online advertising revenues. The results are the most accurate measurement of interactive advertising revenues because the data is compiled directly from information supplied by companies selling advertising on the Internet. The survey includes data concerning online advertising revenues from Web sites, commercial online services, free e-mail providers, and all other companies selling online advertising. First and third quarter revenue reports are estimates, with the actual figures being released along with second and fourth quarter data respectively.

http://biz.yahoo.com/bw/050428/285626.html?.v=1

Trends bode well for THK......

[bok-bok]

Earning Guidance Restated at .20 - .25 for 05, I wish I had more bullets left to buy some more before 1st quarter earnings are released!! Just something to THK about! ChickenMan

[stock_peeker]

Is THK not moving up with GOOG and YHOO?

I think, I thought, I thunk NOT

THK must get by on their own financial strengths. Earnings will move it one way or another... does anyone have a good handle on what kind of EPS to expect for most recent qtr?

[bok-bok]

First Yahoo, now Google have blowout numbers-are we next!! Could be what is needed to start the next leg up!Not one mention of the new ability to measure the effectiveness of companies to analyze their online marketing campaigns--this could be BIG!!! Just something to think about--have a good day! Chickenman

[bok-bok]

First Yahoo, now Google have blowout numbers-are we next!! Could be what is needed to start the next leg up!Not one mention of the new ability to measure the effectiveness of companies to analyze their online marketing campaigns--this could be BIG!!! Just something to think about--have a good day! Chickenman

[abh3vt]

I see that the trust has started their planned selling. Looks like they are doing it slowly, about 10k shares per day:

Filer Relation Geo Code Trans. Date From Trans. Date To Form Type Action Shares Dollar Price From Dollar Price To Current Market Value Type Traded / Owned Holdings
ROBERTI JACOBS FAMILY TRUST B/O IL 4/18/2005 N/A Form 4 S 10,000 $3.190 N/A N/A direct / direct 3,429,726
ROBERTI JACOBS FAMILY TRUST B/O IL 4/15/2005 N/A Form 4 S 10,000 $3.170 N/A N/A direct / direct 3,439,726
ROBERTI JACOBS FAMILY TRUST B/O IL 4/14/2005 N/A Form 4 S 10,000 $3.200 N/A N/A direct / direct 3,449,726
ROBERTI JACOBS FAMILY TRUST B/O IL 4/13/2005 N/A Form 4 S 10,000 $3.090 N/A N/A direct / direct 3,459,726
ROBERTI JACOBS FAMILY TRUST B/O IL 4/12/2005 N/A Form 4 S 10,000 $3.190 N/A N/A direct / direct 3,469,726

ROBERTI JACOBS FAMILY TRUST B/O IL 4/4/2005 N/A Form 144 N/A 250,000 N/A N/A 1,225,000 N/A / N/A N/A

[bohemianclubman]

Just a guess,

Primary Ads, which had '04 net of around 4 mil, is close to closing.

[coolguy]

feels like good news is around the corner. Does anyone? know what's up? It's been a while since we have had any
announcements from Jerry and co.

[bckinblk]

I agree 100%. This is a steal at this price. I believe the market will realize what we have here very shortly. The stock will be moving North. Just wait for the first quarter results. They are coming in the very near future. They will be beyond impressive. Mark my words.Good Luck!

[IH Geek [Dave]]

Not surprising since you were using the same set of eyeballs.

>>We Must Not Have Seen The Same Show!

[Kdin2005]

IMHO is that the stock price has dropped to the current level due to the Jacobs Family Trust selling 250k shares as well as the 347,500 shares Kellogg group/Granite Capital investors dumped within a two week time span has overhelmed the stock price and has created an impressive buying opportunity. Keep in mind, the avg volume for this stock is only 130k/day, as well as, the psychology associated when an insider sells. I don't blame Jacobs for taking some money off the table, the Jacobs trust is still holding around 3.2 million shares.

Take a look at the forward P/E of this stock, it is currently trading at 18x earnings (using the forecasted eps of .20/share) compared to its current P/E level of 36x earnings (after taxes). What does this tell us?

This is a no brainer folks, a stock of this caliber is trading at a deep discount.

[coolguy]

Anyone care to pick the bottom? It appears as if much of selling has subsided. This co. must be working on putting together another round of financing if they are going to continue with their current strategy. It would be nice if a real IB participated and then followed with anaylst coverage.

[Geelongguy]

The reason IMO that the pps is dropping is the fact that during the interview on Mad Money, Cramer commented about the lack of cash on THK's balance sheet and The THK executive agreed that they would need to issue more shares to raise cash. Cramer then commented to wait until this event occurs before taking a position.

It was a terrible interview in the sense that Cramer cut him off before he had a chance to explain the company's strategic plans going forward and how the acquistions would be accretive to earnings. As a matter of fact, nothing was discussed about any acquisitions at all.

My take is that they will have to issue additional shares to raise cash and the market probably is reflecting that fact in the pps.

I'm long quite a number of shares and am looking at this as a long term investment.

[bohemianclubman]

Peeker -

The Jacobs trust was selling 10000 shares per day for a long time and then stopped about a month and a half ago. My guess is that when they found there could be an accounting issue in the fourth quarter, the trust decided to wait until after the results. Nobody believes me, but I actually look at that filing as a good thing - the trust has never sold prior to bad news. Kellogg and Granite are not insiders, they participated in the private placements and are getting their shares registered.

Bo

[stock_peeker]

ROBERTI JACOBS FAMILY TRUST 4/4/2005 250,000
KELLOGG CAPITAL GROUP LLC 3/24/2005 312,500
GRANITE CAPITAL INVESTORS LP SERIES I 3/22/2005 35,000

[bohemianclubman]

Which sales are you referring to?

Until Jacobs filed yesterday, I had not seen an insider sale since January.

Bo

[stock_peeker]

Hey Bo, what can you say about all the recent insider sells?

[the-loanlady]

Bo I too am still holding been in since the forty cents range, just don't post much on the boards - but do enjoy reading everything I can. I remember back on RB crossing our fingers for five dollars or ten... I believe we will climb our way there. GLTY

[rrat02]

Accumulated more shares today. Great risk/reward here. Would be a "slam dunk" below $3.

[dotcominvestor0]

We Must Not Have Seen The Same Show!


The CEO talked for some length of time on THK being a group of entrepreneurial, profitable companies. That all of the divisions are making money and growing. He answered the questions Cramer asked. I have looked for a link to the show on the CNBC site hoping that they would have a video archive because there is clearly a misperception about what was said on this show. I’ll have to reiterate that, in my opinion, I thought the CEO’s appearance went very well and I found it very informative.

[apple1]

Seriously.....were we watching the same show?

When did the CEO talk about anything besides the company WebSourced? Midpoint in the interview it looked like he was going to try to get into what Think Partnership is all about but as soon as he saw the opportunity to hype the product he works with day to day, he forgot about the company and tried to explain exactly what WebSourced does….selfish is the only word I can think of. They have acquired how many companies and he tries to talk about only one?

I DID NOT see the CEO tell the story of who the WHOLE company is. I understand the angle of the show- but why agree to appear if you don't put someone on there that can handle it? Pat Martin seemed like an uninformed, pompous guy and I hope the shareholders put him in his place. I don't want any more of this stock if this is the guy that is going to be the face of the company! Obviously the guy is a PR nightmare.

All the stock has done since his appearance is drop like a rock! See any parallel there?

[Bobwins]

THK dropped to 3.39. Has bounced a little to 3.50. Need less mergers, more eps! Bobwins

[shmolton]

Yes Cramer is a jackass, no doubt.

[dotcominvestor0]

Cramer = Shock Jock

Cramer is the "Shock Jock" of analysts and tries to get everyone worked up. In the interview, he pretended to hang himself with his necktie to demonstrate his feelings about Lucent. His whole angle is to make work people up and try to intimidate people and create "good TV". The CEO did fine in this interview. He told the story of what the company is about, how they are growing, and who they are. If you watch Cramer quite a bit you’d know that he tries to roll over on every CEO he brings on the show and THK did a much better job than most. This is because they have such a compelling story to tell and when you have a great story, even the most intimidating reporters can’t poke holes in it! I thought that they took advantage of a great opportunity to get the word out.

[shmolton]

Bummer.

[sickofscams]

I saw the show…

To say that “it didn’t go so well” is not just an understatement but a brutal misrepresentation. I was embarrassed for this guy and it was simply a painful experience to watch the show. I have watched Cramer before and have never seen him spank a ceo and make him cry like that.

[bckinblk]

What I understand (I'm no accountant) is that due to the new govn't regulation in accounting practises their regular method of accounting was changed. They could not account for accounts that were not fully paid, but owed witch they did in the past. What I'm getting at is the first quarter will be amazing when this is all added in. Excuse me for being a layman. Maybe someone with more knowlege can elaborate. ty

[rrat02]

Not sure why they felt the need to appear on Cramer's show. Does anyone have more info as to what was discussed?

I added shares below $4 and will buy more if there is further price weakness.

Based on how the company is growing (and profitable) this is a compelling buy.

[abh3vt]

My BIG question to you is this: I did not see where the company withdrew '05 guidance. Can you please tell me where you saw that . Thanks in advance.

They did not explicitly state, 'we're withdrawing guidance.' Its what they DID NOT say in their Q4 PR. I'll call your attention to the past few press releases that the company used to issue guidance:

WebCapades acquisition (Aug 20, 2004):
"With this acquisition, the Company expects its pre-tax income to jump from less than $1 million in 2003, to over $6 million in 2004, and to over $12 million in 2005.

The Company expects the acquisition to be immediately accretive to earnings, and today estimated that its after-tax earnings per share would be between $0.20 and $0.25 per share for 2005. "


Q3 fy04 (Nov 11):
"We continue to expect our after-tax earnings from continuing operations to be in the range of $0.04 - $0.05 per share for the fourth quarter of 2004, and to be in the range of $0.20 - $0.25 per share for 2005.

MarketSmart acquisition (Nov 17):
"The merger is expected to be immediately additive to the earnings of CGI Holding Corporation, which has recently announced financial guidance of $0.04 - $0.05 per share for the fourth quarter of 2004, and $0.20 - $0.25 per share for 2005. "

Since then, they have announced several deals that were expected to be accretive to FY05 earnings.

And now, nothing mentioned in Q4. I find the silence on guidance to be curious. Why go quiet after a disappointing quarter?? They clearly had established a recent trend of discussing eps expectations, or at least revenue and pretax goals. Q4 PRs are perfect times for announcing annual expectations; heck, THK's Q1 fy 05 ENDED on the day they filed the K and issued the PR, so they know how 1/4 of their FY05 has gone.

What the Q4 results have taught me is that the SEM/SEO biz is a bit trickier to predict than I expected. Thus, I don't think THK deserves the same high forward multiple they were able to get in the past few months (roughly 30x the low end of the 0.20-0.25 range). Plus, this is a company that relies on the use of its stock for acquisitions, and so stock price is important to continue the successful pursuit of their long term strategy. If stock prices come down because investors don't want to pay a rich multiple at current prices, then they will have lost a major source of currency.

[bohemianclubman]

abh3vt -

I have PLENTY of questions about the 10K. I would also like to speak with Gerry, but decided to give him a few days, I suspect his phone has been ringing. The company did hire a much larger accounting firm in order to qualify for the AMEX, and I'm guessing they forced THK to book some items "differently." My BIG question to you is this: I did not see where the company withdrew '05 guidance. Can you please tell me where you saw that . Thanks in advance.

As for Kramer, Pat went on the show to tell CGI's growth story and got blind sided by one of the more arrogant people in the business. Kramer did not mention that all of the private placements have been sold out. He didn't mention that funds raised from this process result in shares of restricted stock, that could take over a year to get registered.

As for Schmolton's article - it is interesting, but I really don't think that it applies much to us. By my calculations, we are currently selling at a huge P/E discount to nearly all stocks in our group, yet I continue to believe we are growing the fastest!

[dfwla]

Interesting article.

Internet IPO market still looking lethargic

By Bambi Francisco
Last Updated: 4/5/2005 1:53:15 PM



SAN FRANCISCO (MarketWatch) -- If Fastclick is any guide, the market for new Internet offerings isn't frothy.

Pricing at $12 last week, Fastclick (FSTC) saw shares trade below that debut price for the second consecutive day. The stock traded at $11.31 in recent dealings Tuesday.

Fastclick, an advertising agency specializing in online placements, isn't the only IPO of the class of 2004 and 2005 to break below its offering price.

Shopping.com (SHOP), which priced at $18 back in October 2004, saw shares shoot up to $33.42 back then. On Tuesday, Shopping.com's shares traded at $17.66.

Hurray Holding (HRAY), which sells wireless phone service in China, priced its shares at $10.25 earlier this year. It traded at $9.31 Tuesday.

To be sure, Google (GOOG), which priced at $85 a share in August 2004, is one of the notable 2004 IPOs that's defying this trend. GuruNet (GRU), which operates Answers.com, priced at $5 and trades near $20 now.

Marchex (MCHX), which priced at $6.50 and now trades above $18, Greenfield Online (SRVY), which priced at $13 and now is at $20.10, are other recent Net deals that are above their offering prices, according to Dealogic.

Still, many Internet IPOs like Fastclick are languishing. Motive (MOTV) priced at $10 and trades at $9.92 Tuesday; PlanetOut (LGBT) priced at $9 and traded at $8; FairPoint (FRP) traded at $15.05 after pricing at $18.50.

What gives? For starters, publicly traded online-media companies aren't doing so hot.

As for Fastclick, it went out at a multiple that was comparable to publicly traded companies, rather than a discount, observers say. Fastclick went public at a price-to-trailing-earnings of 50, whereas ValueClick trades at 22 times last year's profit.

Typically, IPOs are offered at a discount to attract investors.

Additionally, these deals aren't large enough for money managers to take a meaningful position. "I've heard that they were so small that many funds just don't have enough of a position to dig in and care, so they punt," said Shawn Milne, an Internet analyst at Friedman, Billings, Ramsey & Co.

How can you be bearish and raise numbers?

Google traded up 2 percent to $188 on Tuesday, following an upbeat report from Lehman Bros. See full story.

At the same time, RBC, the brokerage firm that came out with a bearish call on the stock a month ago, stuck to its guns. The title of its report read, "Sticking With Our Thesis, Now With Broader Channel Checks."

Of course, it's hard to read this report as bearish when the RBC analyst raised his estimates for Google. In the report, the firm raised Google's first-quarter net revenue to $712.7 million from $685.8 million. Earnings were raised to 88 cents a share from 87 cents.



Copyright ©2005 MarketWatch, Inc. All rights reserved. Please see our Terms of Use. MarketWatch, the MarketWatch logo, and BigCharts are registered trademarks of MarketWatch, Inc."

[shmolton]

Did anybody here get to see the ceo on Cramer?

I heard it didn't go so well.

[abh3vt]

bohemianclubman, I was looking at the 10k and noticed that the company recognizes cost of goods sold and SG&A differently now than they did last quarter. (HINT: look at the change in % of revenue for each item) Did you notice that?

Why the change? and why did they not discuss this in the 10k?

I'm not suggesting anything underhanded, but it does make Q4 calculations difficult. The company refused to break out its quarterly results in Q4, and doesn't offer guidance after doing so for quite some time.

The PR could have been much more helpful had management discussed the extent of the contract mix (short vs long-term) and how this impacted revenues in the quarter.

Pretax margins dropped substantially (viewed sequentially) as a result of this revenue mix....and management doesn't talk about it? I'm a little bit ticked off at management's unwillingness to address these issues in ways that can assuage longer-term investors in the company. Also, why not discuss the reasons that guidance for FY05 has been withdrawn?

Most of this rant should be addressed to Jacobs, who I have called and have not heard back from yet. Clubman, if you get a chance to talk to Jacobs or anyone else at the company before I do, can you add these questions to your list? Thx.

[bok-bok]

On AOL Personel Finance they have CGIH at 4.55 up .60 In Real-time on the INET ECN. What does this mean? New to this board and new to investing. Please explain - thank you.Chickenman

[break80]

I just got a call from a friend and he said that Pat Martin was just on CNBC's Mad Money with Jim Cramer. Did anybody see it?

[bohemianclubman]

break80

At that Roth conference Mr. Jacobs said that Scott Mitchell graduated grade school and went right to college. I didn't know that he had all those other positions on his resume. I guess it's obvious why CGI keeps purchasing companies in the dating space, they have a top notch - I hate to use the term genius, but if the shoe fits...... at the top. It sure sounds like Mr. Mitchell can do what he wants in that space, it also makes me wonder how close Mr. Diller is paying attention to this one!

I frequently break 80 - would you like some tips, or are you referring to 18 holes?

[break80]

I'm a new poster. I've been long this stock since Jan '04. I'm surprised that know one has talked about Scott Mitchell the CEO of Cherish. After todays press release I started to do a search on him. The results are astonishing!

Mr. Mitchell was one of the founders and developers of Tunes.com. Tunes was purchased in 1999 by Emusic for $130 million. He also was the CTO of Home Shopping Network online. (Barry Diller's company) In a 2000 press release from HSNI it says : Mr. Mitchell designed and developed many online transactional businesses including, RollingStone.com, The Source.com, Tunes.com and Emusic.com. This guy is a stud!

Then he started Webcapades which we all know was purchased by CGI. And now they keep growing the dating space. Do you think he might have the background to roll up a industry?