>>The fact that the show isn't until Sept. 2000 elucidates the infancy of this particular sector of e-business.<<
I wouldn't say that because CRM is in it's infancy, that the infant should be considered small by any means. You have powerhouses like Oracle, Remedy, Piviotal Software, etc. all scrambling to claim a stake in this huge market. Even the press release that you provided a link to makes reference to the . . . "the widespread proliferation of Customer Relationship Management technologies and applications in the marketplace." As a result, I believe that it will be the early providers who will stake claim on the best real estate around. That is another reason why I believe that NSI is well positioned now. In a year from now, the new entrants to this field will have a real tough time breaking in.
I also want to emphasize that CRM is just one of the many potential applications for what NSI is positioned to take advantage of. We already know about their capability to collect data, their information gathering prowess for new and existing businesses, their ability to set up communities for corporations / governments / and private groups, etc, etc.. Now we are waiting to see which of these areas they will announce first, and then in which order.
>>If I recall correctly, the next financial isn't supposed to be anything special but the following one - 4Q - should be much better.<<
The company mentioned this in the Investors' Forum that they held a few months ago. The reason they gave was that the Management of NSI decided to change their business model in the traditional systems integration part of their business. They did this to focus on the much higher margin opportunities in a market niche where they have no real competition. This meant that while they focused on building their new company, they weren't actively seeking business in their traditional field (their old business model). During the Investors' Forum, they also told us that because they were working on the development of their new community management technology, they obviously couldn't use it during Q's 2 & 3. So, this meant that they also couldn't use it to support revenue paying customers. As a result, any interest that potential customers had in their system had to be deferred until they were ready to hang up their shingle again. With the last few announcements it appears that they are now ready. So, yes you are correct in that the 3rd Q results will be along the lines of the 2nd Q results and they will not be stellar. However, the 4th Q is where all the action should be.
>>It looks as though the recent rise in price is in anticipation to tomorrows board meeting and possible news on a merger or acquisition with a nasdaq listed company. When I spoke with Peter Hunt today, he told me that no matter what the news is, it will likely be released on Tuesday following the long weekend.<<
I called the company after you posted this. The message I received was that yes there is a Board of Directors' meeting tomorrow. However, we as investors should not expect anything substantial regarding news of a merger, acquisition, or NASDAQ for that matter. If it happens, then great, but if news does not come out immediately following the meeting then people should not be disappointed. I also asked him if he can tell me if they have made any progress in this regard, and I was told that NASDAQ is high on their priority list and some firms have been eager to talk to them. He also mentioned that we should not get our hopes up over any earth rattling revenue contract announcements being announced next week as well.
I am still optimistic about what may be in the works, however I will tell you that I am not wringing my hands with each passing day on the calendar. I am confident in their model and the potential it offers.
All that said, I would love to see news come out soon next week. Who wouldn't? But I am confident that if it isn't next week, then it will be soon!
Crazy Canuk |
