I pulled this from the 10k posted 5-1-2000. Nothing has changed. I'm tired of all you people that got burned by the DOT-BOMB fiasco ripping stocks.
Of course this is a high risk stock. It's part of the emerging B2B emerging market places that are developing. Whether this company makes it in B2B only time will tell. One thing is for certain good partnerships will decide the future for this company.
Zollars has the contacts, they seem to have the software. Now it's a matter of getting the "old way managers" at the hospitals to do things the new way.
Below is from 10-K filed 5-1-2000. Which is why all the people joining the class action law suits will get nothing.
Since inception, we have incurred significant losses and, as of December 31, 1999, had an accumulated deficit of $56.1 million. We expect operating losses and negative cash flow to continue for the foreseeable future. We anticipate our losses will increase significantly due to substantial increases in our expenses for sales and marketing, product development, operating infrastructure, general and administrative staff and development of strategic alliances.
We have a limited operating history on which to base an evaluation of our business and prospects. You must consider our prospects in light of the risks, expenses and difficulties frequently encountered by companies in their early stage of development, particularly companies in new and rapidly evolving markets such as the online market for the purchase and sale of new and used medical products, supplies and equipment. To address these risks, we must, among other things, expand the number of users of our online services, enter into new strategic alliances, increase the functionality of our services, implement and successfully execute our business and marketing strategy, respond to competitive developments and attract, retain and motivate qualified personnel. We may not be successful in addressing these risks, and our failure to do so could seriously harm our business.
Your right about that. The lawyers usually get something. It's a quick way to pick up 3/4 of million for doing nothing other than filing a suit and signing up a few dopes to join in the class action suit.
I joined a class action suit against SCO a few years back and it had a way more merit than this one does. For my efforts of joining that suit I got $33 for my 300 shares. Considering they were seeking around $10 a share not much came out of it. 1 percent of the sought after amount. But the lawyers collected every cent of their time and materials put in the case. You young people beaware the lawyers are just using you.
You wrote: "Now it's a matter of getting the "old way managers" at the hospitals to do things the new way."
Isn't it kinda late in the game to still be implying that Neoforma's biggest barrier is that "old way managers" don't get it? What kind of weak excuse is that?
The biggest lesson this last year and a half should have taught us all is that it was the "new economy businesses" that didn't get it. They didn't get that businesses must have revenue, earnings and a value proposition. They didn't get that B2B has nothing to do with web pages, and everything to do with business processes and relationships. They didn't get that investors expect a return, and weren't going to keep subsidizing the dot commer lifestyle once it was revealed that the emperor had no clothes.
"Old way managers" are standing in the way of nothing. They are as anxious as ANYBODY to start reaping the benefits of Internet technology. But, they insist on inspecting the bungee cords before they leap off the bridge. It's just another form of due diligence.
How about that Neoforma/GHX announcement this morning? Boy, is THAT gonna shake things up!!!
1. Neoforma does nothing to reduce sales costs for the vendors - (oh sure, just post my products on the website and they'll sell themselves, just cut the contract with the GPO and I'm done.) Zoellars et al are displaying profound ignorance if they believe this is the way of the world. But that's Zoellars for you - his success story was Pyxsys - a product that a monkey could have sold it was in such demand. Zoellars was in the right place at the right time and has been riding it ever since. This best you can say about his contribution to its success was that he didn't screw it up. Other than that, he's a neophyte - unproven and inexperienced in anything that has to do with Neoforma. And its showing.
Oh yes, Neoforma's new B2B "experience" will result in less "administrative" costs for the supply chain. Perfect, lay off those "dollar per our secrataries" pushing the contract paper and replace them with web-developers required to produce and maintain the sw required to do business on the Neoforma website. That makes a lot of sense.
Oh, maybe that will be the "value added" services Neoforma keeps talking about - let THEM provide those services. So, it comes down to - hey mr vendor, take a few percent of your expenses - and give them to Neoforma.