$GOIG is reinventing itself as a company that invests in basic profitable industries.
The risk / reward is different going forward. It's no longer a question of if revenues can be attained (those are guaranteed in the FedEx routes which have been acquired), its can profits be generated from those revenues.
I thought about this company often over the past few years. I changed my opinion some time ago. Its relevant with the new management team and the change in operational direction.
I don't believe Ike Sutton's vision was wrong in the Go800 product, but it wasn't big enough and didn't have sufficient capital backing.
Functionally Go800 worked, however the cash burn required to get to launch meant the company didn't have enough remaining capital to offer a subscription at a price that competed with Yellow Pages.
For the new company it's not getting to revenue which is the issue, but vision:
1. Will investing in XYZ FedEx routes reshape the market for package delivery?
2. Is there some technology or product that will differentiate $GOIG from other similar companies?
3. Is there going to be some kind of integration between the acquired FedEx routes and some goods shipped to customers within those areas?
4. Why not simply buy $FDX (the other side of owning $FDX routes)?
The paradox of iHub: buy high, sell low
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