Heyyyy Cisco!!!!
Glad you bird-dogged onto RDIM. I can sense that you are on a point (like a hunting dog when he knows he has a bird trapped) Glad to have you aboard.
<<Do you by any chance know what the restrictions are on the restricted shares are or whether the 2 million treasury shares are already committed.>>
I do believe the private placement shares are encumbered until sometime in March. My understanding is that those holders don't have hair triggers and are in for the long term. Evidently they too envision a double digit stock after the Company launches its roll out. I am glad in a way that they are there and we therefore know they have a consumate understanding of the longer term prospects for RDIM. As far as the committment for the 2 million treasury shares... I believe that is a question for John Folger (He prefers to be called John.... his fathers name is Mr. Folger)
<<With AHBC being primarily a distribution company with an experience distribution team with established contacts with over 1,500 manufacturers, it makes a lot of sense that it was the first acquisition>>
Yes sir Senator.... I see you and I both still think alike... on certain issues
<<On top of that AHBC will receive accounts receivables of about $3 million. I would guess that these accounts receivables represent credit transactions of its members which means with interest these receivables will produce a great deal more than $3 million in revenue to RDIM over time. AT 19% it would be $570,000 annually.>>
Kudos on reading between the lines. But alas a certain percentage of this will have to for accounting purposes be considered as a non collectable.... so the figure of $3MM is probably realistic and the fudge factor is already built into the equation. If not then so much the better.
<<One must ask themselves why would PCN enter into an agreement for AIME to launch an Internet shopping service for its members during early 1999 when PCN is about to become part of RDIM? I would suggest two possibilities. RDIM either would like to acquire AIME and have a separate Internet navigational site in the US or perhaps it only wants access to some of AIME's sites such as Amazon.com, CDnow.com, previewtravel.com, or eToy.com.>>
Yes... certainly there is a bigger picture here than we are being told at present. As always it is best not to show your entire hand before executing. I have considered and wondered about this. A very good question for the next conversation with RDIM (perhaps during the next conference call). I have always been taught that two sticks in the fire pretty much ensure an ample torch from one. RDIM by virtue of AIME... can achieve a certain credibility factor through an established association with the likes of the other E-Commerce plays (Amazon.com, CDnow.com, previewtravel.com, or eToy.com) through AIME. But your statement: a separate Internet navigational site in the US is not without merit. Perhaps AIME expects to maintain a certain amount of autonomy??? Bottom line I don't really know.
< I would bet that by the time they roll out their demo web site in mid-January, that they will have their new name in place for Fortune to market as well as having finalized it agreement with the Singapore Internet navigational site>.>
Good bet and I certainly hope your timetable is on. That would mean a base pretty soon.
<I was surprised by the experience of the management team for a company this young. Either Mr. Folger has a great business plan or he is as "slick" as "Willie".>>
In a business of this nature it makes sense to have individuals with strong backgrounds in all areas they are expected to come up against. I too like the backgrounds of the team and hope they stick to the game plan. I believe I read where there is an east coast consulting member who specializes on the equity side. I hope her capabilities and resources are strong enough to overcome the immediate hurdles we are experiencing.
Time will tell and of course the important issue at his point is... if you want to be a BIG player in the E-commerce Industry.... you had better look like one in every aspect. That means that when management informs shareholders and the lurking potential investors that something is coming down the proverbial pike by; this quarter or that quarter, etc. ad nauseum they had better execute... or be perceived as a bunch of wanna-bees... "that talk the talk.... but don't really know how to walk". As we know the investment world is full of these and the road to the NASDAQ market is littered with their bones. You have provided the obvious hurdles that must be achieved.... seeing they have been stated by management I believe they are worth mentioning again:
1. 100 physical locations within 3 years.
2. Revenues of $100 to $150 million within 2 years.
3. Membership of 250,000 by the end of 1999.
4. Membership to exceed 5 million within 3 years.
5. Demo site up by mid-January.
6. Fully operational site up by May/June.
7. Nasdaq listing in 1999.
8. $26 million earnings per $100 million revenues.
<<One of the things that I think has been under estimated on this thread is the Direct Access Purchase Card. I assume this will also serve as a type of credit card. If it does, then this will add significantly to the bottom line in the future. The reason every Sears' employee ask you each time you purchase something at Sears if they can put it on your Sears' Card is because Sears realize the Sears' Card along with 21+ percent interest is one of its best sources of profits. I noticed that one of the Special Advisors for RDIM use to hold a marketing management position with IDS/American Express. I doubt that was by accident>>
Excellent read and of course Alfred Werner's background development and patents in that area will provide the much needed security capability that these open transmission transactions will require to become readily accepted. He is of course a key player on this team and perhaps in the truest sense the weight of the concept falls squarely upon his shoulders to an unusually high degree. 21% is usurous in this day in age and if one wants to be truely accepted, they had best match Yahoo's 9.9% fixed rate. That would really endear this Company to the buying public and create a distinctive wedge between them and the established retailers. This goes right along with your next statement of customer trust. Customer loyalty is an adgae that is an extinct and archaic "left over" from another era. Sears and so many others found that out too late. Ask the McKenzie Consulting team members.... who about a year ago advised Sears. I can provide you the number to one on that team. She will tell you. But customer trust is an important ingredient that is essential in making the recipe work. Sam Walton knew that.
<<BTW, could the "Eric Bottman" you mention in your post be "Eric Bauchman" the private investment banker and management consultant who provided the bridge loan for RDIM or are we talking about two different individuals?>>
I would bet they are the same. My take on the name came from John and the audio CC file. Later I did read the correct spelling.
After having read your well constructed and cohesive compilation of company research, I hope my financial advisor (hello Nick!!!) feels more comfortable with our mutual investment in RDIM.
Welcome aboard Cisco.... looking forward to getting in near the bottom of a potential block-buster with you.
BTW: Sigmund has informed me that he will be taking a trip to Milford to visit the Company. Looks like the squirrelly dozen is getting back together on RDIM. Should be profitable and fun. I hope Sig goes this week. |
