Thursday, July 2, 2009

eDoorways Summary

Investor Summary
All of the recommendations are applicable to you. Since you are a partial owner in the company, I would highly recommend that you press EDWY management for answers to some of these concerns and learn about how they are prepared to address them.

You have the right to influence the company through investor pressure. There is certainly opportunity for EDWY to be successful. As it is currently designed, however, I see the expectations vastly outweighing the likely performance of this venture.

I fully expect the share price to rise in anticipation of the October launch date. If you're currently underwater, consider selling at a spike and buying back your position with the profits you made. Then the pressure is off. But I fully believe that once the post-launch performance of the site is measured, the consensus will be that eDoorways underperformed to the expectations and your shares will drop significantly.

I welcome any comments on these posts and my conclusion. If you have questions about my analysis, I also welcome a discussion.


Disclaimer
I am not invested in EDWY. I considered it when news of the conference call came out. I was asked by the investors of my company to provide them with an analysis of this and other tech stocks. I did not write these posts to trash the company, and if you read through my analysis and suggestions you'll recognize that this is constructive criticism. When tech writers pick up the launch of eDoorways, don't think for a minute that they'll be treating yet another .com venture with kid gloves.

If I or my investors buy into EDWY, I will update the post here to reflect the price per share that shares were purchased at.

Update: I made a personal stock purchase in EDWY. I'd like to see the investor walk through and potentially revise my analysis.

Good Luck
Good luck to those investors who are riding profits. I also hope that EDWY takes these suggestions under advisement.


All the best - Jim


3 comments:

Joey said...

Hi Jim, this is Joey writing to you. I'm the guy that suggested to Mr. Kimmons a live walk through of the EDoorways platform since seeimg is believeing. I read your piece and am very enlightened by it. I'm very cautious right now after reading it.You make alot of sense in regards to everything that you have stated.Hopefully EDoorways takes your advice especially about the cloud computing.

Jim Jones said...

Joey - Great job on getting your suggestion through and making a positive move for investors. I think that's the best thing they could have done and kudos to you for getting that accomplished.

A live walk through may reveal a clear idea of what the software is designed to do. Translation: Surge in pps. But it may also reveal some glaring concerns. Fortunately, the walk through is occuring months ahead of the controlled focus group roll out, so there's still time for investor input on how to improve the service.

If one were to disregard all of my suggestions, I still believe that EDWY will carve out a little niche that should produce dependable revenue - it's just that it would be much smaller than most investors are hoping for.

Unfortunately for me, I've been unable to get answers from EDWY directly. To date, none of my posts on their corporate blog have cleared the moderator.

Keep asking questions with the intent of improving the service. This is about increasing shareholder value and providing input to what could be a successful and useful web service.

Jim Jones said...

Joey - EDWY has apparently announced the details of signing up for the walk through. You must sign an NDA and are not able to buy or sell from now until the launch.

The press release went out this morning and you have until market close today to sign up:
http://edoorways.com/request.htm

Nothing like trying to bury the news and limit investor opportunities.