At $2.00 share the company is still grossly undervalued - management has moved quickly taking steps to turn VELT around and create a runway for rapid improvement in cash-flow and a return to profitability. We upgrade from neutral to "BUY" for our more aggressive investors.
MIG's former CEO Barry Houlihan and other former MIG employees sold off a boatload of shares last week. for a reason. I followed their lead. The former MIG CEO sold over 97% of his shares. Q2 revenue projections are below analysts. Street has it at $55.16 M vs. Ross's guidance of between $42 - $45 mil. So why would you think there's an upgrade coming? Buy back in when Barry Houlihan, GM, Western Europe for Velti buys back in.
The only apparent step management is taking is reliably lowering guidance further each quarter. They are also flat-out lying to investors each quarter about capital needs. As DSOs do not show any signs of improvement projected cash flows won't materialize in Q3 and Q4. This is one of the worst companies trading on Nasdaq and will soon cease to exist, thanks god.
... still talking your "short" position .... take your profits now and go long. Quality people do not willingly walk on to a sinking ship both Ross and Baker are quality management hires - they are wasting no time to bilge out the fat and trim the sales and get this company back in the race .... turn-a-rounds are never easy. Velt will be a much better company once they get through the "fog of doing what must be done" ... if you have no faith - then be gone from this board.