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Technology Stocks : TEAL

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To: joseph burns who wrote (38)10/3/1997 1:40:00 PM
From: Alan Edgett   of 160
 
From what I know from inside sales folks, the outside department is focusing on selective large deals rather than trying to establish a beachhead with many small ones. Obviously this startegy can backfire as it did this quarter. From the conference call we heard a lot of bs (IMHO) about next quarter revenue and how these deals are still in the works and I've confirmed that they are, but by no means are they "closed". If they manage to close some of these deals, which are with f500 companies the impact on the bottom line could be tremendous. But, in my opinion this is a big if. I chose to not sell as well and have some confidence in the product--certainly not the management. Morale is low and the company is loaded with executives and no soldiers. Being as small as they are they need to work on their indirect sales channels (i.e. resellers) or they will not be in business this time next year. They have some new products coming that may increase Wall street's interest but nobody buys from a company that may/maynot be in business next year. Signing some large reselling deals would alleviate this concern. I am currently trying to determine how "mission-critical' their product really is to determine my position in the long-term. Their Marketing is non-existent, they simply operate on a trial basis to generate sales. I am assuming you are refering to Andy Chen? Only time will tell if his contacts are significant--he certainly has the reputation.

Edge
P.S. Have you used Winted or other products?
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