Club Mulgoa

Thursday, July 02, 2015

NEA

Why re-invent the wheel?  And why dare re-invent the wheel where there is already a great wheel maker?  Google Map is used by everyone and nearly websites use it.  For non-commercial usage, it is free.  But Google never give things away for free; you have to put up with some forms of advertisement usually.  And the quality and frequency of updating depend on whether you subscribe, too.

Hence when NEA took on Google, you would think mapping against a giant would be a silly investment.  However, there are chinks in Google Map.  NEA used to be in a different industry when it swallowed up the mapping minnow.  Today, it is its principal source of profit.  The last one wasn't that good but the prospect is.  Whether the share price continues to rise will be heavily dependent on what the next profit figure is.  There are commercial enterprises out there that much prefer what NEA can offer over Google!

This is not a stock to invest in as the bulk of the rise has already occured.  But of course, it can jump if there is better prospect after the next profit announcement.

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