There is no doubt that short-term, we will need cast-iron stomachs. This seems to be a company bent on becoming dominant in it's field, that's tough when you're competing with MSFT and IBM. This is where cutting margins, and reducing overhead (which was done last quarter) helps, but not in the short-term stock price. You are right that a bad quarter can put this stock at $8, as already seen.
OMKT has been in this e-commerce business alot longer than both competitors, and the key to their dominance will continue to be licensing out their technology, not hording it. You might look at the RMBS model for how OMKT should act.
I think they are doing this, but management has to continue to keep a low profile on patents and other proprietary items (see below for OMKT's patents, and why they are important to e-commerce) because they are "sleeping with the enemy" and it will become very important as this technology continues to evolve, not to have many enemies. I think mgmt needs to be commended for taking early measures to avoid an overhead spiral, and to focus on gaining market-share rather than adding to the bottom-line and losing market share, the internet business model, though new, seems to be fold as many companies into your product as possible, worry about money later. This works now, but most assuredly will not work if OMKT wants to be around 5 years from now. So, as a value investor, it scares me, but if I take the financial aspect out of my model, I see incredible potential, so, it's worth a few ups and downs in stock price.
Here I am answering my own question from an earlier post on "what the big deal is on their patents, and in laymen terms, what does it mean...here is the link:
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