CPNE has simply lost all its credibility as a public company, and I believe it will take some time to restore, if ever.
I read yesterday’s press release concerning Q4 ’07 and the outlook for ’08. My initial thought- this is the first honest and useful information out of this company in many months. Kudos to the new management team for ushering in a new era of disclosure for investors.
If I’m reading this information correctly, they plan to evolve up to an ecommerce company, in the business of providing a full slate of ecommerce related services to businesses requiring a web presence.
Perhaps, by moving in this direction, they will evolve from a “selling the dream” to individuals who don’t really have businesses, to servicing a more established business by facilitating its internet persona.
New CEO Tony Roth appears to give a pretty good look at the immediate future, admitting they will lose $1 million on $4 million in sales in q4. A refreshing change.
It would appear they are exorcising the past management’s mistakes in pretty short order, taking their lumps, and moving on. Lots of “one time” and perhaps “non-cash” expenses.
If you buy into the corporate performance projections for next year, the stock is probably a buy right now.
Personally, I wouldn’t touch it- yet. The market cast its vote on the news by leaving the stock near its low, and no bids are appearing.
If they can deliver in ’08 under this new management team with a new business direction, the stock could be a lot higher. In light of recent history, I believe investors will be from Missouri on this one for a while.
Ever seen a Missouri license plate- they call themselves the “SHOW ME” state. That’s the market’s view on CPNE for the time being- SHOW ME, then I’ll believe.
On the plus side- if they can really move in this direction, and have thousands of real businesses paying them a monthly fee that recurs indefinitely, the next version of this company could be the real deal.
Comments and questions are welcome.