Rookie Analysis

Here’s my tally of Recombo vs. Ingenia with respect to the criteria that we were asked to keep in mind as rookie analysts.

Management Team – each pitcher claims to have assembled an excellent team, but I wonder what pitch wouldn’t include this claim? I for one would need to dig a little deeper into the particulars of this aspect before investing, or recommending investment.

Business Model – both ventures appeared to be based in sound business models. But again, this is an initial perception based on little information and for every assurance that was offered another question came to mind.

Product – both products came across as competitive; Recombo’s as it is cutting edge and Ingenia’s as it is targeted at a market that currently shows little competition.

Market Readiness – ready.

Innovative – it would seem, from what I could understand, that Recombo’s cutting edge “solution” software is definitely innovative. Ingenia’s product is less innovative if viewed within its home market, but could be considered innovative in the target market where product of this type, we are told, has little representation.

Exit strategy – Recombo is not firm in this regard with a willingness to accept growth or consider options for buy out at the right price. Either scenario could work well for an investor. Ingenia’s take on this seems to be to simply grow their company. I get the feeling that if the Vietnam venture is a success the strategy would be repeated, but it’s only a feeling.

From what I could gather Recombo is a company that continues to experience growth. I must admit, I had to visit their website to determine what it is that they actually offer, but really the bottom line is that they continue to grow and evolve to meet the demands of the market place and from an investment perspective isn’t this what we’re looking for? Igenia on the other hand looks to be higher risk as they are attempting to access unfamiliar markets with no proven track record in these markets and in order to attract my investment dollar to such a high risk opportunity the promise of reward would need to be considerable.

Conclusion, my money is on Recombo and I’m hoping for a buy out!

1 comment

1 cwickes { 09.10.08 at 11:13 pm }

Like you, I am a rookie at this kind of analysis and decided towards Recombo b/c of their proven track record. I still find it pretty hard to understand exactly what Recombo is pitching – the connector – the router – the LMS – what?! I guess a properly equipped EVA with the technical background required and necessary could make a more informed decision. Let’s hope the investment in Recombo wasn’t too substantial, just in case!

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