anyways, finally got a listen of the earnings call as well as looked at the articles floating around... here are some thoughts:
1) on this insider sale thing, should also note the stock options exercises and sales which are reported at the bottom of the link provided on this. wexler also sold about 40,000 shares in march. bradford, the cio, sold 45,000 shares. so, probably not a belief that the stock will dramatically rise in the short term. the june sales represent over 10% of each of herrick and wexler's holdings. wonder what is going to happen with sheeroy's shares now that he doen't have to report - probably is dumping the stock left and right. same with jerry, although jerry probably owns too much to actually not report.
2) good progress on the numbers. better margins, revenue, etc. although, it is slow and based on the projections for next year, i believe that it will continue to be slow, all be it steady, improvement.
3) the stock option scandal. was reading the paper the other day about prosecution of ceo's for back dating. seems like they are going to go after everyone. i think jerry does have something material to be worried about. with a $47MM restatement, i think some will have a field day with him. while it is spread over a number of years, that really doesn't matter... it was done.
4) am not sure how i feel about their changing the way they report their numbers. the break out of experience modeling / creative just seems... fad'ish. one thing is for sure, it makes quarter to quarter comps more difficult and perhaps this is one of the reasons why they are doing it.
5) feel that they are diluting their focus at a time where they need more focus. they touted a SAP win but... they are touting their creative... sure, they are going to say they are all connected... but, at the same time, they want to say they specialize. just cannot have it both ways. the other thing about this "big win", it really took a long time to win... oh, and haven't we heard this before? big win, big revenue... but, fizzle. herrick seemed to be off guard by the question of whether 2007 revenues are going to be materially better becuase of this win and the answer - uh, no... ramping up this year... we'll see if it actually goes anywhere....
6) they still have a high PE and a rich market cap. not surprised it fell back to the 7 dollar range. i think this stock is a solid hold but am shocked that there are buy recommendations coming out. goes to show you that analysts may not know everything... quite frankly, i would be surprised if we saw the upper end of the 6 range.
7) as a day trading play, it will be interesting next quarter around. you may see a run up before they report again, but i would again expect a fizzle after the earnings report.