Ezra,
I agree with you and Bill. I'm currently working on a list of FNTN competitors for the FNTN InvestorNet site (http://home.swbell.net/sprue).
None of the competitors include companies such as Yahoo (search engines), Amazon.com (e-tailers) or AOL (ISP's). FNTN, in my opinion is much more like a combination of a packaged software provider (eg, SAP, PeopleSoft, Oracle, Bahn) and a custom software service company (eg, EDS, Andersen Consulting, Computer Associates).
They also have some similarities to phone companies and internet long distance providers.
Finally, they will offer services such as Online Training and Video Streaming, that are currently only being offered by custom software companies and in-house MIS departments.
I think the loose association of FNTN to the internet sector has helped the stock price a bit, however, I agree with you and Bill, that the services FNTN will provide are in sectors that earn money now, and not 3 or 4 years from now. FNTN just happens to have a web site (as do other package software providers and custom software companies). And the web site happens to provide information that could be a source of revenue.
Anyway, I like the fact that FNTN will be profitable soon and will have positive PE multiples that can be compared to other companies in its "real" sectors. I think FNTN will compare very favorably.
Kevin |
