RE: webbuilder press release - Small time web service, ewebstore. Gotta do a lot of those to make a buck. I took a look at classicdatacom (www.classicdatacom.com). CONV just bought them. Basically a PC LAN installation group with expertise with hooking up DSL, T1, and remote dial for small to maybe medium size businesses. Site is terrible, but maybe it shows they are real busy. But you do need these guys who can install and configure small LANs/WANs.
This company has 'clogged accounting', i.e., it's legit, but complex as hell from all the mergers, etc. I think the CEO was a CFO with ICG so hopefully he has cost control and accounting prowess to keep this morphing company under cost control.
Terrible market action, but I buy on any dips to low 10.xx, and sell on above 12, keeping a few shares. What is HOT in the consultant business now is B2B software implementation and offsite application turnkey (ASP). CONV does very little of this since these are big business markets and require people with B2B comm. sftw skills,not people who can set up LANs/WANs and configure routers and firewalls and bring up ethernet PCs. Don't get me wrong, those business areas are booming, but it is cutthroat. Need tight cost controls.
Still don't know if this integration (voice and data) will be an easy sell. Just gotta see the numbers, and if customers are happy with the voice over Cisco routers (reliability, availability, administration and NO ECHO!) I think the pitch is you can save big bucks on IP voice versus tieline trunks (ex. a small business may have 5 outbound phone lines for 25 people that are shared, those are called 'trunks', and you pay per min. for LD, plus about $50 flat for each trunk. They propose putting all the 'trunks' on a router along with their internet line, and buying a single pipe, like a T-1, to carry it to their switch where the voice and data split and go their merry way.) Would love to see a proposal to a small company, and see the ROI for moving voice to CONV's IP router service. Supposedly the LD charge would be MUCH lower than with regular trunks into ATT or whoever. Need to see some ROI 'proofs'.
But for this market cap, makes you wonder. Wonder what GS support is doing? counting their money I guess. It has to be their worst performing IPO of the year by far.
buckhead26 |
