Monday, February 05, 2007

Choices

I have three companies in mind - all of them in the same industry - and here is what I'm going to tell you about them:

Company A - 142 Employees, 7.9 Million Revenue - 55000 Per employee
Company B - 158500 Employees, 64 Billion Revenue - 404290 per employee
Company C - 225 Employees, 25.2 Million Revenue - 1122888 per employee.

Which of these companies quadrupled in the last six months? That's right, Company C, the one that made the most money per employee - it is the most efficient company out there. Is it going to quadruple again? That's doubtful. It's name is Syntax-Brillian Corp (BRLC) and it went from 2.0 to 9.5 since July.

Company A has a great product and its on its way out. Why? Because a company that only made 55K per employee can't stay in business without a heavy cash transfusion. This company is bleeding money.

And because Company B, Sony, spends more than 7.9 million a year in paper clips they could just as easily steal the technology and put them out of business - what choice would Company A have in such a scenario - that's right - none?

Company A? MVIS - a nice little company with a nice little product with a nice little price trying to compete in a huge pond filled with sharks. I wish them and their shareholders well.

2 comments:

L.J. said...

I didn't see the MVIS punchline coming! I'm actually not too sad that I got stopped out of that one. It's too much of a story stock for me and those types have rarely made me money in the past.

The only thing that could make it interesting is Sony's long time ability to screw up almost everything they touch.

QUALITY STOCKS UNDER 5 DOLLARS said...

Make a selection.