3D show ended yesterday... maybe the pop's coming from interested attendees. Doesn't matter... the more I think about these guys position in today's market, the happier I am about owning at this capitalization level, regardless of their tech.
I've consulted for one of the larger Web consulting service shops for the last few years, and one thing that has stuck in my mind is the valuation very small web dev firms are afforded purely due to their engineering talent. It's incredibly difficult to find technical web skills these days (amazingly difficult), and it gets worse every day. Having an experienced, skilled, and talented net-engineering team these days is like having a big pot o' cash sittin' on the balance sheet.
These guys have always been boutique software oriented... they know how to develop software. Now, they've transitioned 100% into net-oriented development (don't know if transition is the "right" word since they were at the forefront of net dev pioneering w/ work on developing SIMNET on APRANET). Regardless, in developing IC3D, they're concentrating on net technologies (java, x3d, etc.) each and every day and their skills could easily be re-focused towards non-3D web development areas.
Don't get me wrong, I'm as excited about they're work w/ IC3D as anybody. My point is, they have a great number of opportunities purely due to their engineering team's experience/skillset in net tech. Barriers to entry in any number of web-oriented development fields are "low." Read the prospectus of any net consulting services startup, and you'll see that stated very clearly. In my opinion, it would not be very difficult for these folks to either shift focus to, or add as compliment, more traditional web development consulting services. Likewise, it's also my opinion that they could easily merge w/ small shop(s) that are more content, consulting service, oriented and quickly become a very viable development firm.
Again, I'm as excited about IC3D as anybody. But what makes me COMFORTABLE, is the belief that these guys have OPTIONS due specifically to their transition and current focus. It's my OPINION that they're NOT a one-trick pony, there's a great deal of hidden, complimentary, value that makes the risk at this capitalization level extremely palatable. |
