Value of VC relative to Economic Factors

One of the areas that really perplexes me is the relative value of video conferencing to economic factors. What do I mean? Well, if you look at say the price of PLCM and compare it to the DJI or Nasdaq, over the last size months, there is no correlation. Ok, why do I think there should be one?

Well, whats the basic premise of VTC? Its to allow people to solve business problems face to face no matter their geography? What are the classic reasons people by VTC? Either they do it to accelerate growth in their company or save on expenses. If the economy is good and business are trying to grow, they should want to buy VTC to accelerate their business. If the economy is bad like it currently looks like right now, people should buy VTC to decrease T&E.

So, why doesn't Wall Street see that correlation and relfect it in the stock price of VTC companies?

There are many socio-economic factors at play that could and should effect valuations of vtc companies.

• Rising Oil prices which increases travel costs
• Weak US dollar makes travel for US based employees travelling abroad cost higher
• Increasing unemployment means that workers that are still there need to be more efficient
• Increasing health care costs could be curbed with more use of telemedicine
  

Wall Street...please listen up... all of the VTC companies out there are making the companies you invest in more efficient. We help to lower T&E. We increase worker productivity. We decrease time to market for new products.