A few weeks ago I got a PM asking about my FORM holdings. FWIW, I am posting my enhanced response.
Q.
Are you out of Jetform? Will this company ever come back? I did not cut my losses and unfortunately I am stuck with a dead stock.
A:
I am holding some shares in an IRA account and although down almost 60%(and going lower), am still willing to hold onto this one. Why? I bought into Jetform because I perceived their product(s) to be a very good way for companies to improve their cost of doing business AND for the quality of partners that they aligned themselves with (HP, Microsoft, SAP, Xerox).
As such, I still think that down the road, they will recover enough for a profit to be made. It certainly has been dead money and will continue to be so for at least the next 3Qtrs, if not longer. Their "workflow" products are in transition to web-based designs right now and I'm sure Mr. Kelly would have preferred to kept the whole organization intact, rather than reduce it. Let's see where it goes.
From the latest PR about the earnings:
''These results are consistent with our expectations. As discussed in previous quarters, JetForm continues to endure a difficult environment for enterprise software contracts,'' said John Kelly, president and chief executive officer. ''The significant short-term slowdown in purchases of large scale enterprise solutions due to the ongoing effects of the Y2K lockdown continues to impact our results. We expect the operating environment to be difficult for at least the next two quarters. However, based on the long-term opportunities we are pursuing via our e-process strategy and the strong senior management team now firmly in place, we believe that JetForm is better positioned than ever before to take advantage of the post-Y2K environment.''
Jim |
