"OK, I've spoken with the company and completed my analysis. It should be published by SeekingAlpha as soon as it gets through the editing department.
In short, revenues were a blowout. Excluding the impairment charge, EPS also beat Street estimates. Even before backing out the charge, COOL beat the Street's original estimates (17 cents...see http://yhoo.it/AadNg4). This is an important factor, because...
On the call, the CEO clearly stated that the company invested excess profits in future opportunities. After speaking with the company, I got the distinct message that they could have easily generated higher EPS (I suspect they would have if they knew analysts were going to raise estimates ahead of the call).
There are several other goodies (i.e. demand for Zumba, the upcoming NBA game, a valuation analysis, and more) but you'll have to wait for the full analysis to be released.
Good job Mark. This company has been given no respect. Nehru jackets were a fad. Zumba passed the fad stage six months ago. If i have to i will get Richard Simmons, who turned a fad into a fifty year career, to explain this. With 21 million in cash on the books and another 17 million available,this valuation is out of whack. The company has been prudent,perhaps a bit conservative in their approach to the mobile revolution. A near death experience will do that. I prefer that to issuing stock to pay for a failed willy nilly strategy. Once last thought. Angry birds come to mind. A Finnish game company with one decent mobile game and private equity wants to hand them billions to go public. That is a fad
They forgot to mention the most important thing! Zumba DVDs are advertised on tv all day but they aren't available at retail! What does that mean? If someone goes to walmart target to purchase Zumba ,the clerks will tell them it's only available in game format That's the best thing majesco has going for them.
Thanks Mark,What happend with after hour today nothing more than a few retail sheeps got scared and jump off the bridge into the cold -30c water...If you people stop for a moment and read the report one more time then you will see the number are excellent...To answer some of the sheeps still standing on the bridge why COOL gotmore revenue but less profit simply because any great company always want to spend money for new projects and futures of the company...Just remember we got the best Q ever with 66.2 million dollars,up 37% from a year ago,more cash flow now than ever...Good night longs
So, by the statement the could have easily raised EPS, I take it anyone with analytical prowess will be able to see the same thing and any real in-depth analysis should bear out the current soundness and thriving of Majesco .... Cool! (pun intended)
Should be able to easily build excitement at Roth...