Just got off the phone with MS
Who, by the way returned by call promptly. Here's a summary:
(1) the recent report that FNTN's largest line is an ISDN is false. They don't have an ISDN. They run a dedicated 56K for their internal LAN and have provisioned a DS3 to handle the external load.
(2) I asked why he is reluctant to reveal the number of authorized shares. He said: "Until we are a reporting company I won't comment on any financial information, because if I do, and I'm even a dime off, we can be sued. I'd rather err on the cautious side. I have no problem with our transfer agent releasing any information they possess. They are independent of us."
(3) No one named Cliff Daniels has contacted him, but he would be glad to talk with anyone.
(4) Despite what some on the SI thread are speculating, "setting up an intranet as complex as the one we are doing, is not as simple as hooking up a network. Certainly you can set up a simple intranet in a matter of days, however what we are setting up involves connecting many companies with various hardware and software together, we had to set up the data warehouse, we had to implement a complex decision tree. Our system makes complex decisions depending on input from customers."
(5) Where we will make much of our money is on the data we collect from people. For example, it costs an insurance company somewhere around $125 to fully qualify a customer, our information will provide qualified customers based on the questions they ask on our site.
(6) Regarding the sales force: It is in place. We are targeting all the large urban areas, such as Atlanta, Miami, Orlando, Dallas, San Francisco, etc.
(7) I asked if MS felt he made mistakes in his previous press releaes:
"Absolutely. I had estimates from the sales reps that we were using at the time. I based my revenue projections on those estimates. That was a mistake, and I this is part of the reason I am being so tight-lipped now."
Finally, Mr. Sheppard said that he doesn't pay particular attention to the short term price of the stock. He is focussing on getting the business going. He re-itterated that "it's better to have 20 million shares worth $10 apiece, than 1 million shares worth a dollar." (By the way, the $10 price was an example, not a projection.)
All I can say is, call him. It's ok to ask questions, but if you are earnest in your desire to learn the answers, DO YOUR OWN RESEARCH.
Kevin |
