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Velti plc Message Board

  • betasplen1 betasplen1 Oct 2, 2013 1:10 PM Flag

    Due Diligence 2 Oct, 2013

    OK, who is tired of reading the same BS being posted for the past 6 weeks? I spoke to Leslie and got some new information to share for a change.
    1) The CRO, Scott Avila, was hired to gather best practices and strategies to garner new business and grow organically in the US. That is his ONLY role. It's not to restructure the company or stating the obvious, not to file bankruptcy! That was a relief to me and I am sure to some of the other longs here.
    2) News flash. The $111M write down represents ALL, I repeat, ALL of the Greek/Cypriot Accounts Receivable. Not part, or most, but ALL. What does this mean? They are expecting ZERO dollars from these accounts and anything they get is icing. Second, there will be no more write downs in the future as everything is done and over with. So, no more guessing games on how much more of their AR is uncollectable. All the bad blood has been sucked out by our good leach.
    3) DSOs for US, Asia and Latin America are less than 100 days. For Western Europe, it is closer to 200 days but their payment record is solid. There has been zero sales in Greece and Cyprus since 2Q13 and going forward. All of the current AR is from good standing geographies of less than 200 days (for W Europe) and less than 100 days for the rest.
    4) Jeffries (not Deloitte) is helping with the Mobclix sale. They want to do it ASAP. The liabilities to the Mobclix publishers is $13-15M like I guessed. That was what was deferred as Accounts Payable last quarter. This liability will be absorbed by the buyer of Mobclix.
    5) The $40M in expense (mostly from down sizing and re-org) and $40M in capital (mostly from moving away from capital intensive enterprise business, not R&D cuts) will show their full effect from the last quarter (3Q13) onwards.
    6) All of Moukas's compensation is in company stock.
    7) FCF will be negative for 3Q but improving from 2Q. She can't talk about FCF guidance as that was not publicly announced. FCF is their highest priority.
    Contd....

    Sentiment: Buy

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    • What do you guys think of this post again?

      I am not critical off beta, but what is in this post to show leslie is phony.

    • good post.

    • I'm surprised you did not ask about the dropped Toyota contract

    • EDGX computers Are set up on algorithm software programs to guarantee short sellers shares without causing any short squeezes
      Shorts continue to shake the trees looking for exhausted shareholder who list all discipline

    • Do you honestly think there are no other A/R that are unrecoverable outside of Greece and Cyprus?
      And FCF for Q3 is NOT what they said earlier this year. The misdirection continues.
      Good luck Beta, I hope you do well, I really do, but this smells

      • 1 Reply to infinite_wisdumb
      • infinite_w, ... it has ALL been written off. That has nothing to do with it being unrecoverable or not. It is being recorded for accounting purposes as unrecoverable and I imagine this was at the request of HSBC. My guess is they will collect some of it or factor it for pennies on the dollar to surprise to the upside.

        Misdirection is not the same thing as lying... if she said that, said it was public info, and it wasn't she would be in much trouble.

        More importantly, the CEO is getting paid in stock... this is a show of confidence. Highly dilutive but then better than him taking a salary when everyone else in suffering.

        I've talked before about the resetting of employee options.... the CEO getting paid in stock would usually be part of such a thing. They all want big payouts and to get paid they need to raise this share price.... good news for Longs!

    • 8) They expect to receive the Nasdaq de-listing letter tomorrow and they will file a 6K regarding the same. They have till 31 Dec to comply or Nasdaq can de-list on Jan 7, 2014. Even she commented that it is a long time away and nothing to be done for now. They will appeal the ruling in late Dec only if needed.
      9) They are in constant dialogue with HSBC and their only creditor is supportive of their turnaround plan. The $7.5M was extended after they were told about the write down and Mobclix sale initiatives. There will be NO PIPE though they have 52M shares more in their AS. They don't want to dilute anymore. Capital needs and cash burn will be dependent on collecting from their new AR (non Baltic) and getting new business since all the expense cuts are in place. The CRO was hired to help in increasing sales.
      10) No active hiring or layoffs. New positions are only to backfill any voluntary attrition.

      So there you go. A no-nonsense post that does not predict stock moves, or filled with subjective mumbo jumbo. I am done posting till I get an update on the institutional holdings as of 9/30/13. I may entertain some reasonable questions from the longs. Shorts and bashers can thumbs down and continue regurgitating worthless news. Over and out....

 
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