all--
what follows is a copy of the message i just sent to CNBC.
>>For years I have watched an endless stream of investment
'professionals' interviewed and quizzed on CNBC. Occasionally you get
someone who actually knows what the hell is going on. However, most of the
time you don't. Until this afternoon, my all time score for worst
analyst went to Ashok Kumar, the analyst following Intel who didn't know in the
winter of 1998 that Intel's AMD killer was named Celeron. However, Anurag Pandit has taken the crown.
If you insist on having these people on, would you at least
go to the trouble of making sure they know what they are talking about?
Open Market and Broadvision are not competitors. Open Market provides
software and services which allow companies to start-up ecommerce
activities easily and cost effectively. Broadvision is a one to one
marketing management company. Generically, they are both in the ecommerce
space. However, their businesses are very different. For instance, OMKTs business
is based on transaction revenues. The easiest way to think of it is to look
at how Visa or MasterCard operate.
While I personally like BVSN (and still hold some) the stock is fully valued
and the potential for ongoing growth is limited due to the archaic nature
of its business plan. OMKT on the other hand has a much better
opportunity to grow income because it takes a piece of EVERY transaction a customer
processes. LCOS ecommerce initiatives are powered by OMKT products. Ask MSFT if they would rather have transaction based or outright sales based revenue.
Lastly, and the thing that makes me realize that Pandit really needs to research
before issuing opinions, OMKTs Internet revenues grew at more than 40% last year. However,
net did not grow because of the sale of a division the previous year, and the discontinuation
of that business as a revenue generator. The fact they were able to grow revenues at
all given the restructuring of the company makes it a very good investment.
Please feel free to forward this to Mr. Pandit. I would really like to hear his response, especially since his 'turnaround' story managed to beat estimates last Q by a wide margin.
And, If its not too much trouble, for a corrected view of the company you might want to contact H.C. Wainwright & Co., Inc. analyst Alexander Arnold.
Sincerely,
RWM<<
good luck to all,
trey |
