am i missing something... i am a long term holder .. almost sold everything this morning and then...
I saw the headline ... velti declares bankruptcy! wow, the race is on to get out!!!! so I immediately went to the computer premarket and then try to sell everything at 7 cents to 8 cents ... my average was way up there!!! outch, sucks... ain't it? And then, I took a deep breath and say... let me read some more about the news. Below is what I found:
1) Only the US entities that belong to velti either going through re-organization or being sold.
2) Looks like through this maneuver, Velti wiped out most of its debt and received cash to operate its re-focused market, which is mainly in Europe and Asia.
Not too bad, I said to myself. Yeah, stock price sucks... but then I realize, how many read the initial headline and rushed to sell and refused to get back in. So, I said to myself, what the heck, lets double down at 0.08 - 0.09 per share ... so I did.
Honestly, I think this is great news. This means, Velti has found a solution to stay in business. Now do you believe whatever it has left over deserves a merely $7 million market cap? If you do, then you should be glad that you sold it. I don't, I think this company should be at least around $25 million dollars in market cap. So that means 3.5x at its current trading price. Conservatively speaking, I think it should be trading at around $0.25 / share. Still much below my entry price. But when this puppy gets hot .. with growth and without debt, this stock can run in a few months.
This is my 2cents and I wish all longs prosper. Today is the worst for velti and that means if you get in today, it can only get better.
I'll preface this saying don't know the answer...but what business is left for velt if they sold some of their business that accounted for lots of revenue what is left? Also I'm not so sure companies want to deal with companies who may go out of business so clients may leave...
I don't trust Moukas, but I do believe in the new CFO. He blew up the company by taking that huge loss of $100 million dollars write off. If he did not do that, he would have a very hard time convincing everyone and including the share holders, the debt holders to make dramatic changes to the company operation. Moukas has no choice, but to let the smarter people run the company, if Moukas refuses to, the whole ship will go down. So lets hope Moukas is "smart" enough to step out of the way. Looks like he is just smart enough to step out of the way ... the earning call will be a boost to the stock price. Because they will get a chance to provide more clarity to the changes that are taking place. The headline can not get any worse. The word "bankruptcy" scared everyone out of the stock.