Small Cap Stocks

Despite the negative reaction of the stock market, I believe that the new management team at SupportSoft (SPRT) is moving in the right direction with their new, albeit admittingly still somewhat underdeveloped, direct-to-consumer strategy, which CEO Joshua Pickus discussed in the company´s latest conference call. I encourage interested investors to listen to the call for an excellent overview of the company´s new business direction. 

Essentially, the new plan is an attempt to leverage SupportSoft´s enterprise software assets to create a mass market, customer-support business, that is somewhat similar to The Geek Squad (http://www.geeksquad.com/), a nearly $1 billion unit of Best Buy (BBY). The idea still has some small flaws, but I am pleased that the company is opting to invest a little bit of money on this type of growth path, rather than investing more heavily on the enterprise side. As I mentioned in my first write up of SupportSoft, I do not believe that the enterprise software business is very attractive for investors long-term, given the reliance on large one-time sales and in the case of SupportSoft a limited base of potential customers. However, a successful mass market technical business, though risky to start up and tricky to scale, offers potentially huge growth opportunities.