AuthentiDate Means It's The Real McCoy
With the U.S. Postal Service and Microsoft as partners, AuthentiDate Holding (ADAT ) is catching the eye of investors. Its stock zoomed from 1.72 in March to 16 on Nov. 10, before sliding back to 9.95 by Dec. 10, after profit taking. AuthentiDate has technology that lets users time-stamp electronic documents, such as e-mail and electronic payments, and verify the authenticity of signatures. In 2002, the Postal Service signed a five-year pact to use the technology in its new Electronic Postmark product. And Microsoft, which co-developed the technology, has made it an add-on to its Word program. CEO John Botti says AuthentiDate gets paid about 80 cents per signature. Among clients: Deutsche Telekom, Dow Chemical, and T-Mobile. Tagging the stock a buy, David Lavigne of EdgeWater Research says the market is huge because of the big savings for users, mainly corporate enterprises and the government. Lavigne sees the stock hitting 21 in 12 to 18 months. He expects AuthentiDate to be profitable in the fiscal year ending June 30, 2005, earning 90 cents on sales of $78 million and, for 2006, $1.54 on $123 million.
Note: Unless otherwise noted, neither the sources cited in Inside Wall Street nor their firms hold positions in the stocks under discussion. Similarly, they have no investment banking or other financial relationships with them.
By Gene G. Marcial