Hello Adobe Thread;
We did a search on SI for Adobe today and read the last forty messages in regards to Adobe. We made profits in Adobe quite a few months back and decided to diversify some of the profit taking into a more speculative investment. We have been following this not so well known Canadian Software company called Totally Hip Software Inc. While Totally Hip is not that well known in the financial community, it is gaining considerable recognition in the fast growing web design tool software market. Totally hip is one of those companies that is chewing up Adobe's market share. We took profits off of Adobe in American dollars and got into Totally Hip Software Inc. symbol: THW, exchange: Alberta, at .50 cents Canadian.
In July THW beat out Adobe and Macromedia to take the much coveted BEST OF SHOW award for Webpainter 3.0. And just recently won the BEST OF SHOW at Expo Mac in Mexico city, an event attended by 25,000 Latin Americans.
If people are wondering why Adobe is struggling it is because of companies such as THW that are more agile carving out a niche market. Recently THW just acquired a company from the Silicon Valley to add six new products to their Web Design product line.
While we might say that THW has some very serious investors involved for the long term, they have yet to tap into the serious investor types in the U.S., however it is only a matter of time before these people take notice, especially with Adobe floundering at this time. With Adobe leaving the consumers software segment and focusing on the professional market, it leaves the door completely wide open for companies such as THW to capitalize on this huge market segment.
What we really like about THW is the fact they didn't try to compete with Adobe, instead they focused on the niche consumer education market for Web Design tools. Their Webpainter 3.0 product which was recently released has garnered top reviews recently, and their windows version is set to be released in the Fall. While we still have alot of confidence in Adobe and think that their recent moves put them back into a market where they are best suited, we are merely informing those Adobe followers that there are other opportunities out there to capitalize on certain investments by diversification.
As a disclaimer we are shareholders of Totally Hip Software. Before diversifying our profits out of Adobe we conducted an enormous amount of DD on the market, we by-passed Macromedia because for two years they have been sitting at our near the $10 - $12 dollar range and finally came across THW. We did a considerable amount of DD on the company and even flew up to meet with the management team, if there is any company that will fill the void with Adobe leaving the consumer market, We believe Totally Hip will be that company.
Look at it this way, it is far more likely to make a double or a triple off of THW, then to see Adobe hit $70 or $80 dollars within the same time frame. With the knowledge that we gained in Adobe, we were able to put a sizable investment into Totally Hip Software. We will be closely following this thread and watching every one of Adobe's moves. That's what this market is all about companies becoming stagnant and new players like THW breaking out and growing rapidly.
James Carter & Associates |
