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Voltari Corporation Message Board

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  • tony_7005 tony_7005 Jan 22, 2011 8:40 PM Flag

    Cramer is not joking when he says MOTR is cheap

    mortimorduk,
    I looked at ur previous emails, looks like you are following Motricity for some times and I liked what you said here:
    "Net out the cash and forwar p/e is in the teens for a company with ZERO debt, and 90%+ expanding market share that will grow at 30%+ for the foreseeable future. "
    Just wondering if you can explain how did you come up with above numbers and also with all the heavy insider selling recently and with the noise of another pricing coming up, what do you think where this stock will go in next few months.
    Thanks,

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    • .80 eps estimate for 2011 is conservative given the large deals recently signed that have a revenue-sharing or performance based upside to them. MOTR has no debt and cash of over $70M
      Since MOTR was funded by private equity firms, addition to Icahn, who still hold millions of shares and are liquidating daily, it may take a little while for them to finish but I have no doubt that the share price will rebound when they're done. The nature of the private equity business is to fund early or late stage companies and then look for a profitable exit once a major liquidity event occurs, which was the lockup expiry in this case. The shares will move from their hands into longer term holders such as mutual and pension funds. I am not in the least bit worried about selling from company insiders because that's not what's keeping MOTR down here.

      I will most likely taking part in the secondary when it occurs because the major sellers will all be gone once it's done. Risk/reward is compelling here. Downside of 2 and upside of 20+

      At the current valuation MOTR is an extremely attractive takeover candidate and won't remain independent for long imo.

 
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