SNNT - The Good, the Bad, and the Ugly
Hi Bob,
I also share your sentiments. Here's my take on the boys from Westlake Village.
The GOOD:
1.They are in an industry that is ready to burst at the seams.
2.They also have a tremendous flagship customer in Smithsonian. This will help in landing 1 or 2 more museum contracts in the near future.
3. I was also extremely impressed with Dr. Palm's capabilities and achievements.
4. The deals they have developed over the past year should establish a small but steady revenue stream.
The BAD:
1. They have lost their only director with a financial ties. Either Tim Andrews was incompetent, or the street didn't buy what he was pushing. Either way it doesn't bode well for the management team that selected him.
2.The competition is really heating up. There are a number of companies that are getting investment from the big boys (intel etc..) to ramp up development. Without this booster it will be hard to keep up.
The UGLY:
1. The fact that a couple of quarters ago when they had zero revenue they filed a revised yearly 10KSB with no quarterly summery, rather that the consolidated quarterly report which would have pointed out the obvious. The quarterly report was filed a few days before the next quarter when revenue was achieved. Probably innocent, but something that bugged me.
2. Could old school nepotism be the rational for the companies disastrous web strategy. Does their director with "Web Expertise" earn his position on the board or does he ride along on the coattails of the chairman? I won't even get into the web site, and their viewer not being initially designed as a browser plug-in was certainly not the work of an expert. Without an aggressive, knowledgeable, internet technology expert they may as well turn off the lights.
3. Obejuan you were correct again, the company needs a major infusion of $$$. My hope is that with it comes a few new board members that will shake things up. The company is trying to play a game in this new internet driven world, with old school thinking and actions.
By the way, I haven't sold anything and am not planning to. My take is you need to look at this company as a venture investment. You put money in and go away for a year or two. When you return you will either have a winfall or nothing. The technology is as good a base as a company can have. I'm sure Mr. Budd has some plan on getting capital with this share expansion. If he's as smart as he seems he will take this opportunity to clean out the deadwood.
Just my thoughts FWIW,
JB |
