I think the company spent far too long on the original business (making money from schools paying for SMS’s). However I think they learnt a lot about the mentality of parents and schools, and about quality mobile network communications (hence the point about the watch working so well be a hands free phone etc). In the process they also managed to run a successful business and make a profit. I think they will do well in future efforts because of the processeses they have built in running a business and the things they have learnt. And I actually think the product is actually really good, they have a first mover advantage (with a decent version of the product), and a fairly decent target market. Even if they eventually get killed by the big boys in the current market there is plenty of cash to be made before that happens, and they can just move onto the next upcoming market before the big boys care about that. My only concern post Xmas is how long it’ll take to crack the not quite so early adopters market. We’ve seen early adopters in online sales, the Xmas figures were good, but will we stagnate before the rest of the consumer world finds a need for us. Going into new markets helps existing markets catch up. But we are still faced with being the product in the new market that people might yet not understand. Sometimes being second is easier than being first.
MWR Price at posting:
$3.16 Sentiment: Buy Disclosure: Held
