Hmm...before I move onto the intriguing connection Enherent has with the CIA as a data mining/text analytics play, I first want to mention why ENHT hit my radar screen. Simply put, there is an undeniably low valuation current placed on the stock price. For reference I have attached a link to the latest 10-q and put page numbers next to things I cite. http://sec.gov/Archives/edgar/data/1045560/000119312509229171/d10q.htm. Just an FYI, this is only my initial DD, there will be more to follow as I find out more.
The stock has a current market cap of $785,000, trading at .015 and has revenues in the last 9 months of $8,546,140 (Pg. 2). That made me go ??? Granted, their revenues have taken a huge hit over the last year, but still it seems undervalued. My next question was, well there must have been some dilution yes? Nope, nada, nothing. Share structure as of September 30, 2009 almost unchanged from a year before (Pg. 2). There must be unfavorable financing then? Nope. In fact, they have restructured their financing agreements a number of times this year I believe in an effort to not have to negotiate agreements that would be unfavorable to the stock price (Pg. 6). So the final card I came to, which made me decide whether I like it as a potential long-term play or not was it's story. Maybe it's a dead stock in a dying industry and just has no potential of gaining investor interest. The answer to that is where things get interesting and where recent news is pushing the story forward.
enherent Corp. is an information technology consulting services and solutions firm, committed to delivering quality solutions with tangible business results to enterprise, mid-market and government clients. In partnership with our clients, enherent addresses business needs in a variety of industries by focusing on the critical disciplines of management consulting, program and value management, architecture and solution delivery.
And their partners:
Our partners include industry leaders such as IBM, where we’ve achieved Premier Business Partner status for the past 15 years, Microsoft, Deloitte & Touche and Arrow Enterprise Computing Solutions Systems. We also partner with innovative product companies such as Attensity, an Advanced Analytics firm.
They are an IT consulting firm for all intents and purposes. That seems like a growth industry or at least one that will rebound, but to consider this for a long play I wanted to see more potential. They've done a ton of business with IBM and are a premier partner which is great, having big board connections and friends can only do good. But I wanted something more, that would make me turn my head. And I think I may have found it in ENHT. And this is where that last partner they mention, Attensity comes to the fore.
This is how Attensity describes themselves on their website:(http://attensity.com)
Attensity delivers the power of sophisticated data and semantic analytics in the form of easy-to-use business applications, allowing business leaders, customer support personnel and customers to get relevant and actionable answers fast. Attensity applications use analytic engines to access both structured and unstructured data from various sources, find relevant and accurate information in response to queries and present the resulting insights in a way that supports accurate and timely decision-making
In the midst of the downturn, as ENHT revenues were plummeting and they struggled for survival, CEO Pamela Fredette made what may be remembered in a few years as one of her smartest moves, a partnership with Attensity. Rather than solely focusing on fixing the balance sheet, cutting operating expenses and battening down the hatches, she saw where future growth was going to come from and staked a claim to it. To her it was in Text Analytics/Data Mining and Attensity was a logical partner, as they both already do quite a bit of business with IBM. Of course they also signed an agreement with IBM, one of their mainstay partners, to provide text analytics services. Only time will tell how this pans out, but at least for me, I like the moves she has made.
So what does Attensity have to do with the CIA. Initial funding for Attensity's text analytics came from In-Q-Tel which as the following article spells out is an investment firm launched by the CIA in 1999 to identify and support tools that could serve the national security interests of the U.S. http://www.iqt.org/. And that has lead Attensity to have a number of deals with the federal government including U.S. Africa Command, the Centers for Disease Control and Prevention, and the U.S. Department of Homeland Security. They are at the cutting edge of their field. And while government may have helped provide them the intial funding to do their work they rapidly expanded their focus to include many other business partners as can be viewed on their website. In fact if you look at Google News while there was some buzz at the beginning of the year, in the last month there has been a surge of interest and talk of Attensity. Here are a few of the articles.
So, I know I've just started scratching the surface with this Enherent and its relationship with Attensity, but just based on fundamentals alone this stock looks undervalued. If you add in the potential story here between Enherent, IBM and Attensity and investors start to take notice of the growing data mining/text analytics industry ENHT could go much higher. That all said, I hope their next 10-Q shows a turnaround, with less of a revenue bleed.
*Please remember, this is all initial DD, if I've made any mistakes let me know, I always strive to make it better and do your own DD, don't depend on others.
Market Data 
Markets 
AI
