A little bit more on John Y. He was part of the Tulsa football team that was lost in a plan crash in the 60's. John was on the 2nd. plane. He's got his annual vacation meeting this week with the other second plane survivors (drinks and memories in S. Florida).
He's a man of rock solid principles and fairness. Great to see a genuinly nice guy finish strong.
BTW, when you begin to understand the economic model for the Cymedix model, it sets the house on fire.
- The internet-based networking software is basically given away for free, client and server. Its transaction driven. Every event over the network has a fee. Pay for what you use. This builds continuous growing cashflow stream with your costs assumed on the front end (installation) - major league margins on the downstream income.
- Its an open network, meaning that if one HMO has a base of Doc.s installed, a lab/pharmacy/hospital can come along and hook up and begin communicating with the whole network (with the appropriate passwords/levels of security). The network strategy is built on the fax machine model. The more units there are, the more nodes to communicate with, the more the network begins to reach toward critical mass, when you have to become part of it. Potentially a dominating model. Keith Berman is the farsighted man to give credit for this one.
When you get the bigger picture, forces at work and market impact, it's a compelling vision.
On the other side, its a "tower of babble" in the medical marketplace now. Multiple competing propritary systems that don't communicate. It will take awhile to get the first Cymedix networks installed and for the company to reach CF breakeven, and will definately take longer to begin to add the mass. BUT, that being said. If this product gets adopted by a couple of giant HMO's a critical mass could be built, and if that happens, $10/s will be a distant memory as the cash flows build, and a market cap approaching $1bb becomes a potential reality (IMO).
I'm in for the long pull...
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