FMKT is not an Internet Company. The "LSD" test for an Internet goes something like: "A company is an Internet Company if it could not exist without the Internet".
Lets examine the facts.
FMKT's "prime mission" is to assist clients in taking purchasing needs to open market bidding. They have accumulated a body of knowledge in market sources (supply side), and the expertise required to create the needed RFQ's. They have a group of folks that can come into a business, help that business locate potential suppliers for any given product, and assist them in preparing a RFQ for distribution to these potential suppliers.
They work with clients to help them quality and narrow the list of potential suppliers. The nature of the alternative supplier's business, their size, capabilities, financial history, reputation with other customers, etc.
All this work, according to FMKT themselves, takes several months. But finally everything is set up for the submission of bids. A time is chosen and the list of potential suppliers is notified. Lets say there are 6 potential suppliers that have been invited to participate in the actual ?event? itself. OK, now we have 6 suppliers that will communicate at say 10:00AM on Tuesday. The "event" is
scheduled to go from 10:00AM to 10:30AM -- 30 minutes. Note that this effort has been in process for months and NOTHING HAS BEEN DONE ON THE INTERNET yet. Oh there may have been some e-mail's sent, but it is likely that communication and distribution of materials has been done with Fed Ex or UPS.
But finally the day comes. Now FMKT would have us believe that the ONLY WAY that these bids can be collected and communicated is via the Internet?? This defies logic and common sense. One could set up a teleconference. One could arrange a video conference. Let's not got so locked into the FMKT propaganda that we can not use our imaginations to come up with several alternative ways to establish communication with only 6 people at a set time. Remember, there is no need for 7-24 access, and the participants have been specifically chosen. Not just anyone, but a very limited list of people.
FMKT wants everyone to think that the Internet is the "one and only" way. This is what gives them access to the Internet classification required to justify their Market Cap. But, once you understand the whole process, one realizes that the use of the Internet is incidental to the FMKT service, not the prime driver.
FMKT is a consulting company. Yes, they have great knowledge in the area of how to take products to open market bidding, and yes, this is a valuable service. Unfortunately, they have yet to show that they can make a meaningful profit. And once investors understand that there is no "Internet magic" in what they do, the valuation will reflect what they are.
The facts are there. Once you understand what FMKT really is, and get past the hype, you are left with sizable losses and no Internet leverage. And, once a specific item has been taken to open market, there is a real question about repeatability.
"A company is an Internet Company if it could not exist without the Internet". Can FMKT exist without the Internet? You betcha! |
