The market has lost all confidence in Arena’s ability to manage. The Board must act today or it will face lawsuits accusing it of abrogating its fiduciary and governance responsibilities. The required steps:
1. Dismiss Arena immediately for incompetence and continual misrepresentation of events, developments and “facts.” (And the many other issues the board is surely aware of by now.)
2. Find a way out of the DeLuca contract. The company does not need another layer of management – a very costly one, at that. In addition, his background is far less relevant and impressive than most realize.
3. Leverage Bob Hussey’s considerable talents as a turnaround expert, as this is exactly the skill set the company needs at this time.
4. Wall off the patent factory so that there are no further costs associated with it.
5. Make clear that the company is reorganizing around its (thriving) HipCricket mobile marketing operating business and team – the only real assets the company has.
6. Eliminate all costs not directly related to the HipCricket business.
7. Make clear that HipCricket is, on a standalone basis, only a few months away from being a cash flow positive business.
8. Arrange financing based on all of the above, which should be readily achievable with the other problems finally out of the way.
9. Communicate to the world that the board has not, in fact, lost control of this company.
10. Get back to growing – profitably – the leading mobile marketing company in the world (as measured by sophistication, client roster, etc.)
No more dithering. The time to act is right now…today.
Agreed. The company is getting back to basics, focusing on its productive assets. Now if they can find a way to monetize the IP (and strip out the associated costs in the process), the path ahead will be much, much brighter. Keep the faith.
well said stockguy..after seeing the relentless nature of this drop, it makes me wonder if the HC numbers and info are for real..does someone know something? it appears they do, and its not good..could it be Hipcricket?
I think people are coming to understand that Arena is running this company into the ground. He is not an operator. If anything, he is a deal guy. But look where that has gotten us. He makes crazy (unilateral) hires, he spends money like a drunken sailor, and he refuses to report to the board. He also knows noting about mobile marketing -- just listen to him try to describe this area of the business on various calls. People see the enormous value and long-term potential in HipCricket. But if Arena keeps spending money the way he has been, he will bring the whole company down. Time is of the essence.