yadayada Posted June 26, 2014 Share Posted June 26, 2014 The more I learn about this industry, the more it seems that this is where you want to look for really solid moats, huge operating leverage and often badly mispriced stocks. A few examples seem to be OPRX and Lombard risk. What are some good primers? And what do you need to look out for? How well do patents protect you in this industry? It seems with a lot of these programs there is a large first mover advantage and high switching costs. And sometimes also the network effect. With LRM you have 5 year contracts etc. And it both examples the competition is very limited. And often the cost of these programs are tiny compared the other costs of a client. So they pay up if it is good. And it also seems that once you give support on your program, or license it out, it is difficult to maintain and copy by someone who is not familiar with that code. You need the guy who programmed it to fix it if it is broke. One more thing, it is easy to scale up with v little added costs, and this seems to be something that the market often doesnt take into account. Thoughts? Link to comment Share on other sites More sharing options...
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