Carl, I have had a chance to look at the companies and your analyst and must admit that you made very good points.
However, VIAD considers INFA a partner:
"Viador E-Portal Suite introduces a substantial advantage for customers by enabling faster, more educated decisions about business performance."
-Diaz Nesamoney, President, Informatica Corporation
While not arguing with any of your points, I would like to mention a few observations:
If the IPO does not not raise the $46 million as planned, then investors like me can buy the stock cheap. If the IPO is successful then VIAD will have more cash than most of of the competitors that you mentioned.
The high R&D spending that you mentioned may result in a superior product which may result in sales growth.
The increases in selling expenses could be due to an increase in the sales force (new presence in Switzerland announced recently). A good sales force is a trained sales force. Training may explain the lack of sales relative to selling expenses. The way this industry is growing, a larger sales force seems appropriate. Merril Lynch predicted that it would be a 14 billion industry in just a few years.
That suggests that there is ample opportunity for several companies. If VIAD is able to attract or keep good management they have a very good chance of doing well in this industry. In fact, an article in Computerwire ( viador.com ) claims that top level executives are flocking to EIP's. It would seem that that is the case also at VIAD:
- CIO from Charles Schwab joined VIAD's board of Directors
- Charles-Andre Fraefel, former Managing Director of Platinum Switzerland, brings nearly 20 years of experience in information technology to the position of Managing Director, Viador AG.
- Raja Venkatesh, new Viador VP & CFO, "brings over fifteen years of experience in financial operations, business strategy and technology to Viador's management team.
Venkatesh was Corporate Treasurer at Maxtor Corporation, Director, Corporate Strategy and Development at the Pacific Telesis Group, and worked for six years at General Motors Corporation in various capacities.
At Maxtor, Venkatesh led the company's $345 million IPO. At The Pacific Telesis Group he helped develop an Internet strategy and oversaw minority investments in technology start-ups. He has an MBA from the Darden Business School at the University of Virginia.
Now, I didn't know that this was going to happen when I started this thread. However, I would not be surprised if other high quality individuals joined the company prior to the IPO.
Now, I feel better about VIAD than I did a few weeks ago.
Your feedback/opinion is welcomed. |
