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Gold/Mining/Energy : PYNG Technologies
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From: kimball938/5/2005 11:45:48 PM
   of 8117
 
My concern about new products

Let me articulate this in a slightly different way. This company has limited finances right now and when you have limited money you pick the investment options that offer the best risk reward ratio.

Creating a new product from scratch has huge risks and the rewards would be many years out.

Making an acquisition has slightly fewer risks but from what I have seen managing sales for a new product is not exactly PYNG's forte and I have seen stronger companies flop trying to grow via acquisition.

On the other hand the current FAST system seems to have finally developed a willing market with very very high margins. That market presumably could be enhanced if future revenues are put into selling more systems.

Essentially I see focusing resources on the existing system to be a high return low risk use of money which is why I favor that focus. That being said I think a reusable system is a must so they have to invest some further cash in bringing that to fruition.

I am also more than happy to have them develop new products or make an acquisition if it is their best use of available capital. I find it very unlikely that will be the case anytime soon.

For anyone who sees a single product as a huge liability I would point out that ford rose to be one of the largest corporations in the world basically selling a single product.
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