I confirmed yesterday that David Enzer is personally working with the company. David is incredibly smart and well regarded as a Managing Director at Roth for the last 10 years. He is one of Byron's top guys.
Roth is bad #$%$. They won't even represent a company unless they like them and see opportunity. Obvious the company has been approached by someone or someone has made inquiry into buying them.
We think it might be smart and the best thing for the company to let some of Roth's better institutional clients into the name through a small deal here. A firm like Roth will generally put its best clients into a deal and once done, they will get behind it by doing non deal roadshows and having their analyst pick up coverage. It's hard for pm's of large funds to get enough size in a name like this in the open market.
Adam, that is good news. I am very pleased that Roth is now in the role of advising us on possible opportunities, some of which, according to the conference call, are already being explored. I trust Roth, and especially Enzer, to provide the various services Augme needs. I believe we will derive much more benefit from them than we did Northland.
Roth is a much larger and influential firm than Northland. It's a significant step up in terms of representation. We see their interest and specifically David Enzer's personal participation as more than just any interest in a small fee associated with a small financing. They wouldn't even waste their time. Enzer's focus is technology and media, he knows all the players in the space and who the possible best suitors are. We think had the company originally had better bankers, it may already have seen possible acquisition occur and the shares would likely never be at current levels.
if management is restricted from buying shares, obviously something is going on that would increase shareholder value eventually.. when they are allowed to buy shares, at this price, they can really load up and God knows they all have the money to do it. that is quite an enviable position... I believe management has said they want to move away from litigation and more toward settlements. ironically, you must sue the person first to bring them to the table. I do hope they settle with Pandora and AOL, and make a deal with a NPE. At this point when the company is rolling, I hope they to go to trial with Millennial Media and Velti. singles first, then home runs.
Sentiment: Strong Buy
If that small firm Northland was able to get the stock to almost $5 from 80 cents, imagine what a firm like Roth can do when they get their clients into the name and take them out on the road. Their analyst will probably cover them too since they cover Velti with a buy rating.