Sweet.
We're up to "an extremely compelling ROI" and confirmation that "Staples is paying for all costs now." That article had a lot of really good news for ABSY in a concise little package. You have to love it when a little company like this has a supportive customer like Staples.
Store wide roll out in Canada would be 300 stores... I'm still looking for the global number, more, now, with the acquisition.
I think it will likely prove to be the case that I'm ALSO right about a couple other things:
The impact of having a bevy of orders in hand with a timely reduction in the payroll. This is a pretty small company, and it won't take a whole lot of change on either side of the page to push the ledger into the black. I think if they run a lean operation, they can be profitable with Staples as their sole customer... and making that happen will help to get other customers more interested in the products.
Survival isn't the issue. The key issue is the time line to ramping up for larger order volumes. That has required a lot of patience up until now. Recession WILL drive this company into an accelerating sales pattern as their customers start looking for ways that spending a little can help save a lot. The ugly market conditions we are seeing, that scare the crap out of their customers, are the best thing that could happen for ABSY. The next six months should see a pretty good change in the market for counter-cyclic solution providers like ABSY.
The Zen of ABSY... Ommmmmm!!!
As before, I'll continue to be as patient as necessary with ABSY, and I'll wait for it to develop at the organic pace it does. This isn't likely to soon be a momo penny stock you should expect to ride hard and put away wet in a few days of frenzied action. It isn't a rocket sitting on the launch pad... ripe for the touts to blow in for the pump and dump... It is a boring, but solid small business with some great opportunities that will require some patience to develop... and it should prove to be a VERY worthy performer in the long term... without having predictable displays of fireworks.
I'll be more than happy to have them turning a profit now on a steady pace in low volume sales, more so than I would be having them ramping up in sales a little bit faster while also pairing the pace with a much higher cost structure needed to "push" the differential in sales. Let them come to you... keep costs down... turn a profit...
Looks to me like they have it on the right course now... and have reduced the risks pretty substantively in the current period. :)
I'm not hawking for news on this tiny company every day. I've tucked it away and don't mind letting it gather a little dust... and it is gratifying to pull it out and dust it off once in a while, and find that it has improved since the last look... even if not everyone sees here what I do.
