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It is quite simple. My source inside TRAD is telling me that they are being
told to stop thinking of TRAD as a software company and start thinking of
themselves as a brokerage firm. There are three basic profit centers in this
business, software(smallest), data provider(middle) and brokerage(largest).
TRAD wants to be a brokerage firm which has the potential to make the most
money in the long run. If you want to predict the action of TRAD ask
yourself what would a brokerage firm do next not waht would a software
company do next. This means if you do not open a brokerage account with TRAD
then you can drop dead as far as they care.
Robert Holt
----- Original Message -----
From: "Tim Tillson" <timtillson@xxxxxxxx>
To: "Clyde Lee" <clydelee@xxxxxxxxxx>; "Bob Fulks" <bfulks@xxxxxxxxxxxx>
Cc: <omega-list@xxxxxxxxxx>
Sent: Friday, August 31, 2001 8:57 AM
Subject: Omega's got religion
> Bob's summary is brilliant, one for
> the business textbooks!
>
> It's as if Omega suddenly got the internet religion,
> and are shedding all their valuable worldly posessions.
> The only problem is that, this particular space ship
> launched for the heavens some years ago, and blew up
> in flight.
>
> What can they *possibly* be thinking??
>
> -Tim
>
>
> ----- Original Message -----
> From: "Bob Fulks" <bfulks@xxxxxxxxxxxx>
> To: "Clyde Lee" <clydelee@xxxxxxxxxx>
> Cc: <omega-list@xxxxxxxxxx>
> Sent: Friday, August 31, 2001 7:26 AM
> Subject: Re: NeoTicker (was Re: EL to VB translator)
>
>
> > At 9:34 PM -0500 8/30/01, Clyde Lee wrote:
> >
> > >Don't be in too big a hurry to scratch Omega/TRAD as I have yet to
> > >find anything that allows me to develop ideas as easily as in
> > >TradeStation.
> >
> > I agree. Too bad the supplier of the product is killing it.
> >
> > Picture this.
> >
> > You have a company that is selling a product that has turned out to
> > be the industry standard for developing and testing trading systems
> > and indicators.
> >
> > The original architecture of the product was very clever and was
> > nearly perfectly matched with the customer's problem so it became the
> > platform of choice over many years.
> >
> > In spite of totally abysmal quality control and horrendous customer
> > service, you still have a virtual monopoly with no competitive
> > product anywhere close to the same capabilities.
> >
> > There are thousands of programs available to customers written in
> > your proprietary language that customers can easily get to experiment
> > with.
> >
> > The market is growing since more and more people are understanding
> > that the buy/hold mentality that worked for the past 20 years isn't
> > working any more. They want more active management of their money and
> > most now have personal computers.
> >
> > All brokers would love to be able to provide such a tool to their
> > customers and would gladly provide an interface between such a tool
> > and their order entry system.
> >
> > You would think that anybody who had such a company would "think he
> > had died and gone to Heaven".
> >
> > But no. They decide to throw all that away and become an on-line
> > broker, trying to compete with well funded giants such as Schwab,
> > Fidelity, Ameritrade, etc., all of whom happen to be laying off
> > people by the thousands.
> >
> > By deciding to compete, they cut off potential sales through all
> > existing brokers who could have been a massive sales force promoting
> > their product.
> >
> > By discontinuing to sell the product, they force all customers to
> > start looking for another product - no one want to be stuck without
> > support. This also cuts off the only existing source of revenue.
> >
> > This also sends a clear message to potential suppliers that the
> > customer base is up for grabs so potential competitors redouble their
> > efforts.
> >
> > Someone must have a death wish...
> >
> > TRAD stock is again near it's all time low of about $2.50 so the
> > stockholders are voting - with their feet...
> >
> > But perhaps we are missing something and this is really a brilliant
> > strategy in disguise...
> >
> > Bob Fulks
> >
> >
>
>
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