Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (5561)	12/28/1998 2:13:00 PM
From: Wright Sullivan	Respond to of 78748

Armin- Sorry slow on the reply here regarding DSTM. << Is it not hard for a small company like this to compete internationally , especially if they do most of the consulting themselves? Also how do they fare competing with much large companies who offer a full line of services? >> Over the last couple years, DSTM has become very well fortified internationally. They have purchased competitors in England and Germany. They purchased their distributor in Australia/NZ (continuing their preference to sell directly to the customer). They also purchased a smallish CMMS outfit in Brazil, taking advantage of recent financial uncertainty there. Basically, DSTM is a niche player. They are the market leader for maintenance management software, and they offer consulting in the installation/implementation of that software. The major negative is competition from ERP companies who view CMMS as a small piece of a larger problem. Thus far that has not affected DSTM's growth. If it does, then I would expect DSTM to seek to be acquired by one of these companies. But I do not expect that to happen soon. In the meantime, there is a major need for CMMS in industry. In order for companies to run lean support staff, their maintenance operation must be automated. And at this point, very few are (I know this from my work). DSTM offers software packages which cover the gamut from a five-person shop needing to get organized, all the way up to a huge corporate maintenance operation. Very few ERP vendors have this breadth or experience. And maintenance is traditionally a low-budget area, making it less desirable for the big ERP players. But DSTM knows how to make it profitable. I hope this is useful. I think DSTM is a good company at a good price.