It's interesting that at a time when 90% of the B2B has fallen on hard times, that Majestic decided to buy its stake in Remarketer. Now Majestic has not only one story (safe-t-bar) to possibly perk investor interest beyond its growing modular business, but a second story (B2B). Of course, a lot depends on the ability of Remarketer to provide the service supposed by the Majestic newswire yesterday.
During this past year, B2B's biggest problem was back-end integration. Front end was no sweat, if the B2B company could get hold of a product to ship - just slap on a label and throw it on a FedEx truck. The back-end was so jumbled though, that the supply chain couldn't keep up with the sales force. With the B2C this wasn't too important and most irate customers experienced little more than a disappointment. Back-end integration is extremely important, however, in B2B circles, where a business will rely on just-in-time delivery.
If I read yesterday's post properly, Remarketer will launch a test program in the next week or so which will hopefully provide all the central clearing house features to relegate back-end integration problems a thing of the past. If successful, the remarketer web page need not be flashy. Industry will sign on if presented with a successful formula. Just as with the safe-t-bar, however, Majestic will require a marketing program, and the "hot" portion of the investor story could be a year or more away. This is no different than what I was told when I visited the company in San Diego. And this is why I voted my shares to expand the company.
Majestic also owns a leasing company with apparent other financial interests. I have nothing to add to this post concerning this aspect of the company because I'm not familiar with its operations. Perhaps one of you beancounters out there can put that part of the newswire in layman's terms - I mean, "maximize value recapture in the disposition of off-lease capital equipment", leaves me wondering where they went.
I'm hoping we can find some renewed interest on SI, because there's very little meaningful discussion regarding this company (and most others) on RB.
Bill |
