Wish analyst day event didn't happen, CFO screwed up on that day - We are paying big price since that moment
Wish analyst day event didn't happen, CFO screwed up on that day - We are paying big price since that moment (stock dropping from $5.80 to $1.88 today). Management should never have invited analysts to share something that scared them and fueled this short selling.
One of the worst faux pas I've ever heard of by a so called experienced CFO. If he did do it on purpose like someone else posted it was inherently immoral to have shareholders lose their hard earned investment. Should of just waited for the earnings report, stock would have taken a big hit but no where near where we are today. Am long but expect this stock to slowly bleed below 1.50 in next few months. Will have to wait it out, and hope for some unexpected big contract to increase projected revenue. Hope is not a good investment strategy. Ross needs to keep his mouth closed for next nine months.
Ross purposely brought the stock down. The company brought guys in from Microsoft and promised them cheap shares for their efforts.(plus he and CEO & others don't mind getting theirs cheap either) To deliver, he had to do this, just like he had to strip 37 cents out of this earnings ( through additional reserves and intangible write-downs) and set up money to bleed back in to make this accretive to an acquirer. It is very obvious that they are setting the company up to be acquired, and that's why the Board brought in Jeff. He has the experience having just come from a company that was bought out.
It was a PR day to begin with, so analysts and other financial hanger-ons are expected to attend. What is NOT expected is for the CFO to drop a bombshell comment off-handedly that tanked the stock like you said. For someone who was suppose to be sharp and astute this was a major faux pas. You don't turn a PR day that has the purpose of PROMOTING your company/stock into a literal blood bath. How does a competent CFO make a derogatory comment regarding EBIDTA at a PR day? A PR day is NOT the avenue to announce this nor is it the time and place where you can fully explain and maybe provide some explanation so you can do some damage control?
I get a good laugh when I read comments on here supporting the new Chuckle-head CFO, saying "give him time". Well how about understanding that it took him only 6 weeks to screw up and match the performance of the rest of the Three Stooges. Replacing the CFO with this new guy was the same as the Three Stooges changing Shemp for Curly.
I believe it comes down to the longer time horizon over which Jeff Ross views things. Ross was brought in to clean up VELT's handling of accounts receivables (which had been kind of sloppy in the past). Moreover while Ross will likely be VELT's CFO for a long time, when the analyst day occurred, Ross had been on the job less than a month. IMO, Ross 's plan from the start was to put all of VELT's past in the rear-view mirror, put VELT's past management missteps behind them, and position VELT for long-term growth.
Ross didn't take on the job at VELT out of charity. He wants to make money from an appreciation in VELT's share price just like VELT's other shareholders. However, Ross has no alliegance to folks who bought VELT at much higher prices before he joined VELT management. Additionally, Ross has a much longer time horizon than do many of the traders on this board. Over time, VELT will deliever wealth creating returns. It's just going to take some time for the VELT story to play out.