the first part of the year or so .... What are you expecting from this company with regard to a payout. Obviously we will never get back to those levels again .. why not take this as a write-off at this point. Please ..... no need for the ig. responses
This company blew itself up ... they could ease the pain by incrementally write off the non-collectible and spread it over the course of a few quarters. They opted not to and declared all debts are not collectible and declared the loss of $110 million. BOOM... investors were scared because this showed that they were not making sound decisions when working with dead beat clients. Also, they lost the control of mobclix. the very thing that should have been an asset turned into a nightmare. The management is in question ... you see it trading at $0,35 is really a vote of no confidence on the management... not so much the value of the company. My view is that if this drastic write off and self-admiting defeat on mobclix were not pressured into the report in the second quarter by a potential buyer, then this management is #$%$. I think the potential buyer could have easily said, "look, according to our due diligence, you guys have noncollectable debt and you are bleeding money with moclix, I want you to disclose it and see how the market react before we can settle with a price. Otherwise, we walk." So velti did just that ... sadly .. the overreaction is going to drive the sales price for velti ... extremely low. You are looking at a $1 from here, the most. However, if velti ended up changing its CEO ... the value may double overnight from here and up. Good example would be like Groupon. They have more than doubled since the ceo departure. In any event, you got to roll the dice and hope for hte best. I am holding and accumulated somemore at $0.35. I would not recommend it. But I did it ... to average down .. gambling? perhaps. One thing you should keep in mind is that many lawsuits will be thrown out of the court ... just because lawyers want to sue, it doesn't mean they have a case. good luck to all longs ... i hope by holding, you will all get rewarded.