ZAGG

5 Comments »

• Steve Dorff says:

  November 1, 2009 at 7:02 am

  Hello Ian,
  I have been watching ZAGG lately as a possible buy on a price rebound. But I was turned away by their press report on ZAGGbox. The second paragraph of that report causes more questions than answers (the $35mil to develop but we picked it up this year) . The info which follows poorly explains what a ZAGGbox is and what competition it needs to beat. At under $999 per box it must be more valuable than a computer workstation and needs to slice and dice too. This appears to be a brand umbrella effort and in general such schemes have poorly storied results. Well, not to be quickly discouraged, I went to the web site as indicated in the PR and could not find amplifying info on the much heralded ZAGGbox.

  In summary, this looks like diworsification to me.

  My best regards,
  Steve
• iancassel says:

  November 1, 2009 at 8:11 am

  Steve:

  The PR was written vaguely and confusingly for a reason. Cuz it was meant to be vague and confusing They will be keeping it this way until it actually launches in Q1. Remember these guys are marketing/branding geniuses, so if something seems so obviously confusing/vague, it was meant to be that way. The only reason they put that PR out was for reg fd purposes, since some people already knew what the zaggbox was (ie: if you were at the istage competition).

  IC
• Steve Dorff says:

  November 1, 2009 at 2:13 pm

  Ian,

  Geniuses eh? Since you have met them and I have not I will not argue. But let me say, as I type this post I am listening to a Mozart violin concerto in which I clearly can identify genius despite my meager musical training and talent. With regard to ZAGG’s recent PR on ZAGGbox, being intentionally confusing is not normally an attribute of genius.

  I respect genius in music, natural science, mathematics… but in business I want winners. Is ZAGGbox a winner?

  My best regards,
  Steve
• iancassel says:

  November 1, 2009 at 7:21 pm

  First, any company that can grow revenues from 0 to $40m in 4 years with more or less the same internal staff, with virtually no capital infusion are geniuses. I’ve met them and they are all brilliant. They could sell sand in a desert.

  Speculating on the success of a product without knowing what it is is a waste of time. Also, there is very little risk for ZAGG as the OEM is backing it up and guaranteeing it so any inventory they will buy back from ZAGG. ZAGG has the exclusive rights…As long as they can sell them. If it’s successful it’s zaggs. If zagg can’t sell then who cares, So not a lot of risk. It’s just a nice call option on this technology which gives ZAGG upside with little downside. The market is giving zaggbox zero value in the stock anyway, so lets wait and see.
• Steve Dorff says:

  November 2, 2009 at 12:32 pm

  Hello Ian,

  Thanks for the information and your patience with my tendency to doubt mgmt strategy, whether it is ZAGG or XYZ. I will watch ZAGG carefully.

  As always, my best regards and respect for your efforts – Steve