Both you and TLW may have said it better than I can. It will take other investors (and a few large fund managers) taking an interest in this company to move the stock higher.
Closing sales, increasing revenues, and improving profitability and market share are key metrics for these large institutional investors.
My experience has been that they don't buy a story, especially early. They would rather get in later and pay a little more after the company is demonstrating the things that will encourage others to buy the stock. Later they will sell, when everyone is clamoring for the stock -- at a substantial profit.
Alya's failure to bring in the sales; the lack of broad market acceptance of this new LonWorks(R) "standard" ...so far... is IMHO the biggest reason for the apparent stagnation of the stock price. If they can close the deals they have talked about, even if they are a little later than hoped for, that will go a long way toward establishing the fundamentals that big investors look for.
Developing a new industry or leadership with a new technology takes time. Investors (as opposed to traders) who have a high risk tolerance, may find this company a good investment. They do, after all, have contracts with some large companies. Next comes performance, then growth.
McDonald Miller, in Seattle and the Pacific Northwest, is not known for taking a lot of risk. They have a good business reputation and manage a lot of major properties. Though I have not talked with anyone there, I doubt that they would have taken on the contract obligation if they did not have a high level of confidence that they could sell the product.
Do you know that they haven't sold any product or are you guessing? I was told of a large building in Seattle that they were proposing the ALYA solution for. The customer (a bank, I think) decided to use a band-aid for the immediate problem and put off the solution, as I recall. I was not party to the decision. From what I was told, though, it would seem that the problem still exists and that the solution is viable and only waiting for...
Well, have you ever dealt with a bank when it came to the bank having to spend money? I have! Banks will wait until the building is on fire before buying a fire extinguisher, and then complain that the store isn't renting space from.
I will make some calls and post any new information I am able to. To date, however, I have not heard anything that Dale has not made public knowledge -- and I do not expect that to change.
Happy New Year. |
