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Chris Baker <chrisbak52@xxxxxxxxxxxxxxx> had written:
>The stock's down because it is going to cost Omega a bundle, in the short
>to intermediate term, to make this transition. Not the least of their
costs
>being the cost of the incentives for current users to move to the
>internet-based systems.
I guess, but clearly Omega is trying to position itself as a "dot com"
company - with a multiple in the stratosphere - and not as just another
dorky software company - with a multiple based on earnings and
other such mundane stuff. If the market buys into this strategy,
their costs should become irrelevant.
Note that the whole thrust of such a strategy - and Omega isn't
the only company pursuing it these days - is focused on cranking
up the stock price, NOT on providing its customers what they
want. Of course, a corporation does have responsibilities to
shareholders, as well as to customers, so maybe this strategy
isn't so wrong in the grand scheme of things.
One other thought: A lot of recent discussion on this list has
been about the data vendors' inability to distribute quotes in
fast-moving markets. They've tried cable, they've tried
satellite, they've tried the internet - nothing seems to satisfy
the demanding user. Might this suggest that a better
architecture would be to have the trading system's logic
running at a central server that would have a high bandwidth
connection to the data, and letting the low bandwidth link
be between the system and its user? I will definitely agree
that it doesn't "feel" right to relinquish my system to someone
else's server. But, from a datacomm point of view, maybe it
makes some sense.
Of course, then you have to evaluate what sort of a company
that "someone" is. If ya don't trust 'em, then the whole
arguement goes down the drain.
Jay Mackro
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