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Technology Stocks : FirstWave Technologies (FSTW) -- Ignore unavailable to you. Want to Upgrade?

To: TEDennis who wrote (7216)	12/20/2002 5:10:08 PM
From: Oeconomicus	Read Replies (1) \| Respond to of 9677

What kind of complementary products are you thinking, then? Something beyond things (like 1stOrder) to add a small bit of functionality to the CRM products, I assume. If so, then you've got to venture into other business apps like accounting, ERP, etc. I don't think FSTW could seriously expect to make any acquisitions in those areas unless they can find some struggling startup that needs cash (they'd be struggling because no one will fund them)and will take it (and liquidity) at a very low valuation. That leaves alliances and, as you said, the record in that is "splotchy." If it really is different this time and they can make some new alliances (of significance) AND make them work, then that's the way to go. Best alliances would 1) address the integration with other business apps issue or 2) address the need for distribution. The latter, BTW, is a huge issue for FSTW. As I noted before, the competition is heating up. 243 players is hot like a NY subway car in August - it's just too crowded for anyone to be comfortable. But the kind of competition they face now is different. These companies are big, well capitalized, well staffed and have thousands of outlets through which to sell their wares. FSTW has one big partner that doesn't like having its name used publicly and maybe a few little ones, one of which thinks there are 13-16 million $25 million plus companies in the US. Oh, and they have two new salespeople in England. FSTW needs distribution, but I'm not sure how they can get it. Bob PS: Nearly all the rest of the 243 also need technology partners and distribution, making it even tougher for FSTW to sign the right ones, much less make them work.