My Reply
by: alsense 7/7/00 5:54 pm
Msg: 1169 of 1170
CMIV has seen the light that shined on HYC, EPOS, Verifone and others early last year. All of these companies have internet based solutions for the point of sale. A new company, pre-ipo, is Ten Square, and there are others in this space as well.
I think internet based POS advertising companies should take this opportunity to look at the struggles the internet companies face now, and figure out how to avoid them. CMIV has lots of outside companies to help with the infrastructure that will make the POS internet a reality, but unfortunately, the concept will be a commodity before they have their first installation.
So, how do they make their service valuable enough to win deals from the competition, and still make money? They have to start to look at this through the eyes of the CFO. How can they pinch pennies and still get the service (product too) to market?
CMIV's competition is very stiff at this point. I think businesses whose core competency is content have a leg up on those whose core competency is equipment. On the other hand, you can't have one without the other at the POS.
If I was CMIV, I would make certain my hardware and the supporting infrastructure were truly ready to go, and work the costs down on those items. I would focus on cost efficiencies in running the business, rather than innovation. CMIV has proven that innovation is not their strength.
The reason their stock didn't react to the web announcement is because there are a number of companies doing what they want to start doing, and those companies have not made money doing it yet. I firmly believe the day will come when most POS devices will have an internet connection. The value will be for CMIV to supply the hardware for that solution, not the content. If they focus on that aspect, they should be able to ride a decent wave.
By the way, interactive devices like ICE from Hypercom, Entouch from CMIV and iPOS from EPOS are not the only way to get web content at the point of sale. Ten Square is putting their content on gas pump based LCDs, and I can't recall the name of the company that provided LCD clerk/customer flat panel display's to safeway, but those devices are also destinations for web content.
As an ASP, I don't like CMIV. As an innovator, I don't like CMIV. As a systems integrator, I don't like CMIV. As a hardware provider, they have potential, and if as a company they start listening to their customers, they have lots of potential.
The company has lost so much credibility with me by trying to do things they knew nothing about, that I don't know if I consider would investing with them again. I might short them again if there is another unreasonable spike, but that remains to be seen.
If I was thinking of investing in CMIV, I would look for signs that they were becoming more focused on profiting from manufacturing instead of trying to be less focused on (manufacturing) what they perceive as a less interesting business.
I think Barry Thompson wants to make a quick buck, and is firing hollow shells toward the stock market. I would look specifically for him to re-focus on the basics of operating the company efficiently, understanding the limitations of his company, listening to customers. I would look for him to start working with oustide partners who know how to be ASPs rather than trying to do it himself.
One thing is certain, ASPs have never shown themselves to be viable...yet...and so I have no confidence that CMIV will be better at it than someone like MSFT....who spends more than CMIVs revenues on consultants who's job it is to figure out how to make the ASP model work.
I rambled....I hope it helps.
-Alsense-
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