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Augme Technologies, Inc. Message Board

  • mobileguru20000 mobileguru20000 Oct 9, 2012 3:14 PM Flag

    Velti

    A hedge fund put out Velti this am as its highlighted short. I can't cut and paste the entire thing from my version of it but it's pretty scathing. Goes over some of the issues we've talked about here. I've said before I think Velti's issues eventually play right into Augme's hands.

    Here are some highlights:

    "Velti's core business is a low quality, cash consuming, and poorly integrated amalgam of mobile assets" "Management has excelled at capital raising but but their track record of execution is far less impressive." "While the company did generate operating cash flow in 2Q12, it did so by extending its accounts payable" "Expect Velti's cashburn to balloon again in 2H despite management's guidance of sustainable positive free cash flow by Q4." We model in 50 million cash burn in 2H12, leaving company with severe liquidity risk by year end." "Velti's filings present additional red flags" "Unclear where the company's core competency lies" "company further clouded the issue by making a series of acquisitions in areas that appear only tangentially related to its core business." "Company's acquisition have introduced a significant amount of execution risk and financial liability, seemingly with limited fundamental benefit." "Moukas and Kaskavelis seized the opportunity to reduce their stakes in the company, selling 17% and 16% of their holdings." "We believe company is worth at best half of current valuation, and consider that the equity may ultimately be worthless."

    It goes on and on. None of it very flattering. Granted it's being written by a short but what they are saying really echoes a lot of what is being said in the space itself.

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    • Here's what MG said. Thanks dude for saving some of us some serious cabage.

      "A hedge fund put out Velti this am as its highlighted short. I can't cut and paste the entire thing from my version of it but it's pretty scathing. Goes over some of the issues we've talked about here. I've said before I think Velti's issues eventually play right into Augme's hands.

      Here are some highlights:

      "Velti's core business is a low quality, cash consuming, and poorly integrated amalgam of mobile assets" "Management has excelled at capital raising but but their track record of execution is far less impressive." "While the company did generate operating cash flow in 2Q12, it did so by extending its accounts payable" "Expect Velti's cashburn to balloon again in 2H despite management's guidance of sustainable positive free cash flow by Q4." We model in 50 million cash burn in 2H12, leaving company with severe liquidity risk by year end." "Velti's filings present additional red flags" "Unclear where the company's core competency lies" "company further clouded the issue by making a series of acquisitions in areas that appear only tangentially related to its core business." "Company's acquisition have introduced a significant amount of execution risk and financial liability, seemingly with limited fundamental benefit." "Moukas and Kaskavelis seized the opportunity to reduce their stakes in the company, selling 17% and 16% of their holdings." "We believe company is worth at best half of current valuation, and consider that the equity may ultimately be worthless."

      It goes on and on. None of it very flattering. Granted it's being written by a short but what they are saying really echoes a lot of what is being said in the space itself."

    • Good call dude! U da man!

    • Another words they are buying their revenue. This will catch up to them soon. We just have to be patience and let HC execute. Eventually the clients on Velti will realize their short comings.

      Sentiment: Strong Buy

    • Uh... VELT can't be shorted as far as I know.

    • which fund?

    • Between the curse of vetli and the fact that facebunk cant seem to find its way out of a closet concerning mobile, I hope we are not painted with the same brush. The associations can do damage to the perception of the space in the minds of investors. We have certainly done enough damage to ourselves to add to it recently ala PA.

      Hopefully we rise above it. Tomorrow we shall see! Good luck to us!

    • And again, not to be cold, what does this mean for Augme's stock??

 
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