02/16/00 FMKT - Internet
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Message 12893559
By: ewok51
Reply To: None Tuesday, 15 Feb 2000 at 7:24 PM EST
Post # of 2046
Today IBD gave FMKTs a C rating for accumulation and distribution. That is a nuetral rating meaning as many people are buying as selling which is not that great but at least mutual funds are active.
(Voluntary Disclosure: Position- Long; ST Rating- Strong Buy; LT Rating- Strong Buy)
ragingbull.com
I have been lurking in the background
by: cryin_in_my_beer 2/16/00 12:57 am
Msg: 4067 of 4101
and just reading the posts and trying to learn. Thanks all for your valuable knowledge and good fun. The grocery store humor was a hoot----coco puffs--HA!---that still cracks me up.
Seriously, I am still trying to figure out who the new clients are and I am still waiting for the big name clients to materialize. I guess my question is---Is there a valid reason why a Fortune 20 or 50 corporation would NOT want their names announced by FMKT? Could it give away a company secret, some future plan, tip on a new product, or jeopardize other corporate initiatives?
Mabe I watch too much TV, but industrial espionage is a real thing, right?
Confidentiality agreements may not be necessary for a trainload of coal or a semi-trailers full of chicken wings, but wouldn't you think tech industries would want to play it a little closer to the vest? Why let the competition know the plans to grab more market share or rule the universe or whatever??
I don't have the answer - just throwing out something for comment.
beer
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cryin_in_my_beer,,,SECRET?
by: wooden_nickel_2000 (62/M/Houston) 2/16/00 4:44 am
Msg: 4071 of 4101
>>>Is there a valid reason why a Fortune 20 or 50 corporation would NOT want their names announced by FMKT? Could it give away a company secret, some future plan, tip on a new product, or jeopardize other corporate initiatives?<<<
Each corporate client has unique purchasing needs, quality standards, delivery requirements, etc. The work FMKT does for each client is unique to that client.
I could understand a reluctance by one company to engage FMKT if they are already working closly with a direct competator. As a potential client, I would insist that FMKT give me a list of other clients. However, I don't believe, once engaged, there would be any unwillingness to let the arrangement be known.
If I believed I had certin unique or proprietary arrangements in my purchasing organization's network of suppliers, I would be reluctant to engage any outside consultants without some form of protection. I'm sure FMKT has develped some way to work through these potential problems with most potential clients. Let's remember that FMKT isn't a new company -- they have been in this consulting business now for more than 5 years.
In the final analysis, if the client company believed that engaging FMKT (or any consultant) would jeopardize some company secrets, new products, etc., then they just wouldn't be engaged.
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Nickel
by: rocket33_2000 2/16/00 6:47 am
Msg: 4075 of 4101
Don't get me wrong, I do agree that FMKT consults. I also believe, after talking to some folks at FMKT, that the internet is but a means to acheiving an end, i.e., reducing the overall procurement lead time and securing lower purchase/contract prices for their clients.
Establishing expertise in a given market, coordinating all prebid activities fromm tech reviews through the actual bid event include quite a bit of consulting. I think FMKT will eagerly admit this. Anyone who doubts this can call and ask FMKT.
Most consulting companies I have had dealings with like to tell me how to do something better. Isn't FMKT doing just that?
Still, how do we differentiate the likes of a CMRC and others with FMKT?
Also, do you think FMKT is attempting to utilize BidWare as a marketing tool? Is this a patentable product? I tend to think not, but who knows.
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rocket33,,,YUP
by: wooden_nickel_2000 (62/M/Houston) 2/16/00 7:52 am
Msg: 4076 of 4101
>>>Most consulting companies I have had dealings with like to tell me how to do something better. Isn't FMKT doing just that?<<<
Sure. They perform a service and help their clients save money. They are paid for the effort expended. The savings to the client are (everyone hopes) greater than the consulting fees. That, in a nut shell, is what the consulitng business is all about, helping clients do something better.
So where does that leave us? It leaves us with a consulting company with a market cap of $7,000,000,000.
Think about it.
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WN - Giant Eagle
by: bettingslip 2/16/00 12:55 pm
Msg: 4080 of 4101
>>I wanted to read their announcement (Giant Eagle) directly (rather than an editorialized version), and then call to chat with them, however, have been unable to locate the company.<<
Giant Eagle is a large, privately-held supermarket headquarted out of Pittsburgh. There was a recent article about them in the Pgh. Post-Gazette. I think the article said they had about $4.5 billion in sales. Giant Eagle was called "the crown jewel in retailing" because it is one of the largest independent supermarkets around and an aquisition target.
There was also an article today, I think, in the Post-Gazette (post-gazette.com) about the Freemarkets and Giant Eagle deal (since they're both local). Someone from Giant Eagle said something like they'll use it for "commodity type things". My opinion, deal is nice because FreeMarkets got very visible local co., but doesn't seem to have big revenue potential. Again, my opinion.
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I reviewed the Giant Eagle article
by: inets_overated 2/16/00 1:19 pm
Msg: 4082 of 4101
And it mentioned commodity produts could be auctioned like store branded bottled water. It does not include branded products or perishables like fruits, dairy and meats. Many store branded items will not be included, as these are done under long-term contracts with a handful of carefully selected suppliers. (above is about 95% of what's in a grocery store.) It also said FMKT would assist in determining which items would quilify (i.e. consulting)
Out of $4.5 billion, my guess is maybe $10-20 million in total auctionable items (maybe!) and maybe a few hundred thousand to FMKT in revenues.
YEEHAA, that should add a few billion to their market cap.
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read the giant eagle article
by: cantfindyourwhatsir (30/M/brooklyn) 2/16/00 2:30 pm
Msg: 4085 of 4101
Inets, well you blew what little credibility you had with me by selectively reporting on this article. It's not great, but not as bad as your partial version of it makes it sound. In the future, be a mensch and post the link (see below). In particular, you omit that giant eagle will use FMKT for equipment purchases, and not just for consumer products. Plus, your statement that 95% of what is for sale in giant eagle will not be "eligible" for FMKT bidding is not from the article. Are you a supermarket manager? Finally, your "guess" at the end is also based on nothing in the article. Why don't you take your half-truths elsewhere?
Adios.
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FMKT is one of 2-3 true B2B companies
by: cak165 (34/M) 2/16/00 2:51 pm
Msg: 4086 of 4101
FMKT is among 2 or 3 true B2B companies that are transcations based. CMRC and ARBA are the only other two that come to mind. As B2B commerce grows from the $10 billion or so this year to what is expected to be $7 trillion in 2-3 years, so are the revenues of those transcation driven companies. Not only are they supplying the infrastructure to facilitate e-commerce, they're taking a bite off of every transcation that goes through. There will be room for all three business models to grow, procurement, marketplaces, and auctions. With 3 million shares in the float, FMKT can rocket 20%-40% upward in one day with some good news or coverage. Institutions have been buying and accumulating, it won't stay at these prices forever. I think FMKT belongs among the elite B2B stocks and should have a market cap similar to that of ARBA and CMRC, somewhere in the $12-$20 billion. It should be there soon.
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