Why don't private enterprises and Pinkies become blue chip companies? Look at the companies the last twenty five years or so that have gone from non-existent to huge multi-billion dollar companies and they all have a similar background.
Successful companies usually have solid funding, (virtually always a non-Pinksheet), very intelligent A type personalities and techie visionaries who have created unique products or services in a new industry, one the blue chips don't already dominate. Typically, no product or service is unique for very long and is soon replicated and copied by others, drastically reducing margins and the companies growth.
Recent successes Apple, Facebook, Ebay, Microsoft, Amazon and Yahoo for example all reached into new tech growth areas where IBM, Zerox and others had no footprint and hadn't conceived of the ideas.
If a company has a product or service that is truly unique in a new or high growth sector and is completely protected by patents and copyrights, they have a chance to have tremendous growth.
Where does KMAG fit in this and how successful can we be?
We seem to have adequate funding as there is no dilution the last year, only talk of a buyback.
Jeff Reid is obviously very bright and his intelligence is obvious, demonstrated by his his novel RFID ideas.
JR is very motivated IMO demonstrated by his get-er-done type of personality. I believe he was in the patent office immediately after he conceived his RFID ideas to get them protected through patents. He also has a broad base of international travel and contacts, particularly in China, a bonus in today's world.
He didn't create the RFID market, we are just one of many participants in the field. We are first to attack some niche areas, areas that JR has stated will generate 10's of millions of dollars annually. Jeff has positioned KMAG in a high-tech high growth sector that is just beginning its growth curve. KMAG isn't the 800 lb. gorilla of RFID and never will be. JR has already mentioned areas within RFID that will provide for a nice business. We have the strong possibility of getting a ten-bagger or perhaps a twenty or fifty or more from present levels. But, we will never be a blue chipper IMO and there is nothing wrong with that.
