JT,
I didn't say Morgenstern should have held on to PHD, I meant he could have gotten a better deal 3-6 months before he sold it. And, by the way, DSSI didn't double their money, they just covered their cost of development and some change. But that's not important, as most start-ups fail, and the fact PHD did OK is quite fine. He could have done better, but ended up doing OK.
All I want, is for George to learn from past mistakes. We both agree there were some mistakes with PHD (though it still was a good deal), and that DSSI could have gotten a better deal. I want George to learn from this experience, and not waste time with Comverge.
If with PHD he had the potential to hit a double, and hit a sacrifice fly, with Comverge he has a potential to hit a grand slam. I don't want to settle for a solo shot, I'd like to at least get a 3-run shot and if it's possible I'd love a grand slam (like Tino hit against SF in game 1 will be just fine).
George is a very smart man. He bought Tower for change, and brought up two fine start-ups (PHD and Comverge) while having one loser with CybrCard (every VC fund would love such a ratio). He also got a great deal with Lucent. However, buying great assets for little money is only half the job. The other half, is taking such great assets with great potential and turn them into money making companies. It didn't quite work with PHD, and the odds with Comverge are looking a lot better.
I want him to focus on Comverge and make the right moves with regards to its developments. Meaning, if the Venezuela deal is delayed (no big deal, if you remember the financial crysis we had this year), you shouldn't let it change your entire long-term strategic plans. They were about to raise money, and this delay must not change the plan. They can still raise money (less cash at a lower valuation, but still not too dillutive). They planned on raising $15 million, but they don't need that much, and $5 million will be quite fine. They need that cash to increase marketing efforts, in order to be able to o what they claim on their web-site (be the leader in AMR and other communication tech. for utilities).
Morgenstern is a smart man, so let's see him use his intelligence for the shareholders sake as well.
Omer |
