I don't think that short interest since Dec 15th has declined very much;
I to excpected a bigger decline, because VELT hit rock bottom the beginning of December (V-formation). Since then there has been accumulation (normally by institutions), there has been the appointment of the new CFO, followed by even more accumulation, and a press release of members of the board buying in the open market.
On Monday in pre-market, we saw uncontrolled short covering of 200 K shares, when share price hit $6.
I would like to see the next reported number of shares held by institutions (and add up: institutions, shorts and insiders).
If the new CFO can sell VELT's results to the street and gain more credibility for the company, and if it's true that mobile advertising is gaining big (as FB among others are declaring), then we might see a solid quarter in February.
If we see a good solid quarter, with a compelling new $ 27M client, we might be in for a squeeze of some sort IMO.
That's actually good news. I thought it would be around 13-14M on Dec 15. The fact that it actually went up a little means there is a lot of ammunition for a bonafide short squeeze when the company reports great numbers for the 4Q (and beyond). It is true that there were 20M shares traded since then and the short position could have gone down significantly. But there was a lot of profit taking and trading volume on the rise as well since it was not an out-of-control spike up (except the quick run up to 5.99). Perhaps we will be around 13M short on Dec 31. In any case, I expect 2013 to be a great year. Cheers!
N obody knows what the new CFO will find yet after the Q3 figures which knocked the shares down 70% !. If there is still more hidden mess to clear up it will be ahown in Q4's figures in late January as any new CO wants to blame any previous troubles on his predecesssor. The company was short of cash at the Q3 and the new CFO may advise a raise for safety sake, which would. There are still too many shorts out there that makes me think they were getting inside information that the Q3 results were going to make them the 300% profit it did. I wouldn't touch the shares until a lot more is known. Why for exmaple should the name behind the $25m deal not want to reveal itself? Why did the Velti CEO even announce until he was sure about it, unless he was trying to get his share price up ahead of a rights issue?
Do you think this multimillionaire CFO with 25 years of experience did not inquire about the issues you raise? Do you think he did not ask about the identity of the 27m dollar customer? Do you think he blindlty accepted a job without looking through these things? I would imagine he vetted the company thoroughly before accepting their offer. His compensation will likely mostly be in stock options increasing his incentive to make certain the company is financially healthy.
I talked to the company first hand. There will be no raise. Period. The $27mm contract was with a "very large household name US company who wished it remain confidential until some later date". Velti was allowed as much as to announce the deal, in fact had to since it was a material event.