Re: ALYD vs. COGIF
COGIF has made 7 acquisitions in less than a year. This has beefed up their employees and vastly increased their revenues. But, so far, it hasn't done much at all for their earnings:
For the three months ending June 30, 1998, revenue increased 768% to US$19,987,084 from US$2,301,000 in the same period a year ago. Net earnings increased 728% to US$2,277,000, or $0.18 per common share...
Keep in mind that ALYD did .16 per share on revenues of about half that of COGIF. Why? Because ALYD is not trying to be a huge traditional IT shop. Their whole gameplan is to automate tasks that are traditionally done by bodies. Whereas COGIF hires programmers to do custom programming for clients, ALYD creates tools that do away with the need for hiring programmers for certain key tasks.
Don't get me wrong, there's always going to be a need for custom programming, and COGIF appears to be following in LGS's footsteps in assembling a formidable business. But ALYD is not heading down that path, nor intends to from what I hear. Again, that's not to say one company is right and the other is wrong-- just that there's room for all types.
- Jeff
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