Mark Blundell on ASP Competition, Earnings, Public Float
> Hello Mark, We haven't spoken in some time. ..edit..
> Now that things have quieted and you are well back >from vacation, I'd
>like to understand how things are going. You have been in communication
>with increasing numbers of investors these days some of which share your
>resposnes, so I haven't felt a need to correspond as much. first let me
>give you an update on myself:
...edited..you all know.
> This new area of business creates some concerns in my mind
>with regard to companies like New Paradigm. As you know, I have a
>significant investment in NPSC, some 42K shares, and am actually
>contemplating increasing this number. I know you have been working hard
>forming partnerships that will be key in driving new revenue streams.
>Be this as it may, have you considered what the impact of the turnkey
>rent an app model will be on custom solution builders like yourself? Have
>you factored this evolution in the market place into NPSC's long term
>strategy? If so, how do you plan to capitalize and or compete with these
>types of service offerrings? Lastly Mark, I raised some issues recently
>regarding the public float on RB. I think you once told me it was
>actually larger than the believed 400K. Is this accurate and roughly how
>large is it? Will the to be announced acquisitions, increase the
>liquidity in this area? Do you have plans specific to improving the
>visibility of the company stock, in an effort to gain increased liquidity
>and price stabilazation? Mark, I hope all is well with you and I look
>forward to your comprehensive answers to my inquiries. Best Regards,
jw
Dear John
I am sorry for the delay. I really am very busy at present (as always) and out of the office a lot on
client business, new propects etc.
First, we will complete the hiring of an investor relations PR company this week. They will
represent us and try to see that the stream of new product and new business announcements
which I expect to come in the weeks
following the numbers are widely disseminated. I am expecting to announce the numbers within
the next two weeks, and to catch up fairly quickly with
June and September. I expect the March quarter to be profitable, June to show a loss (heavy
concentration on new business) with a return upward in September numbers.
I am not sure what the advent of turnkey rent an app model will do to our market, but at present i
see very little overlap. First of all, our target market is the large companies, not the small ones, and
the importance of
what we do is in the strategic advice on the use of the Interent to achieve business goals rather
than on the application building, though we do that too. In addition everything we do is highly
customized, to interlock with
the legacy systems (accounting, management etc.) of the large institutions we serve. i do not plan
to compete with that sector, except in as much as our buybanner product will offer ecommerce in
a box to anyone who wants it,
with no up front fee on their part - just wait till the announcement comes later in the month.
The public float of NPSC is around 2m shares. However, there seem to be only around 500K that
slosh back and forth. the rest seems to be in good homes. The total issued is 4m.
Yes we plan to increase visibility, and are now hiring a PR company to represent us. We needed
the base of some earnings and a decent size before that made sense - now we have the
background business, and the incredible
internet opportunities, I think it's time to sing about ourselves in a way we have never done before.
Please reply if I haven't given you enough here.
We should meet sometime - do you ever travel to IBM HQ - I live in Armonk
Mark
signoff
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Mark Blundell mark@newparadigm.com
Blessed is the man who finds wisdom, the man who gains
understanding, for she is more profitable than silver and
yields better returns than gold. Prov 3:13-14
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