OBJECT DESIGN Inc.: Bargain of the year!! Message Board

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Technology Stocks : OBJECT DESIGN Inc.: Bargain of the year!!

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To: Edward F. Horst Jr. who wrote (2035)	6/23/1998 8:12:00 PM
From: hasbeen101	of 3194

Until these deals reflect themselves in significant revenue increases they are simply good press This is true as far as it goes, but it is not the whole story. Firstly how is it true? We all know that the bottom line is ... the bottom line. By now this company should predictably be producing quarterly earnings of more than $1M per quarter with revenues growing at greater than 50% per year. This sure isn't happening. I would like to see management making some really clear statements to the market stating that these are their objectives. Until we see the money, we won't know for sure that things are working out. But I am a long-term investor, and my intention is to hold for a period of five to ten years. "Sure-things" are for gamblers, not investors. Secondly, how is it not the whole story? I think all these smaller deals are stepping-stones to the bigger more profitable deals. So each deal is not just good press, it is also a stepping-stone to serious revenue and earnings growth. I am actually working with a lot of companies that are looking into using ODBMS (because my company has a track record developing really useful applications that run on ODBMS), and I think I can see the buyer psychology at work. Frankly, less than 10% of buyers will choose the product on its own merits (which are enormous). The other 90% are reference sales, where they have to be shown that some of their competitors are already using much better software, and only then will they buy. So all the smaller sales (to the 10%) are necessary steps before you succeed with the more lucrative 90%. I really believe this is how it will work. The only problem is that the reality will be a bit more "fuzzy" than this: the ramp-up will be relatively sudden (IMO) but it won't be totally obvious at first. And no, the 10% sure isn't exact and I don't know whether things will take off in 2 months or 2 years.

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