HTC, RLOC increased their customer base by 2500 in 2011. With 800 sales people, that equates to 3 sales per.....NOT TOO GOOD. They lose a ton of clients due to failed campaigns and their online reviews/complaints prove that. I don't care how much cash they have on hand, their solution stinks. I am just happy I shorted RLOC and made 52%....going to buy my Turbo Panamera today. Rationalize the sell-off yesterday in whatever way you want, this company does not have a future and eventually you will lose by consistently buying and selling.
Ok Yonkers guy ....I respect your point of view and in the final analysis perhaps you will be correct. However, in the mean time and for at least the near term 1 to 2 years there could be money made. I have made money since the IPO by playing some swings and I have documented such on this board.
I am not a "short" player but trade based on perceived price and value. They have considerable cash onhand, are generating significant cash flow from operations and investing much of that back into the business. The revenue forecast for the coming year is upwards of $450 million. As I stated prior, the market cap is only in the $140 million range with cash alone of $85 million. So that appears very cheap to me and presents a value case as long as they are generating positive cash flow, which they are.
As far as the long term business case and its chance for survival, I suppose it is no different than a lot of small cap tech stocks. Things change in time and I would think the management has the time to correct deficiencies in its business model, mainly that which results in too frequent cancelations.
The cancelation rate appears to be abnormal and a cause of concern. However, simultaneously they are adding new customers globally. If they are able to slow down the cancellation rate just think of the improvement in margin that would create. I am sure they are working on such by either making their internet presence more efficient but also improving the operational support within the company to provide improved customer service. They are serving a market that appears to be growing and apparently in a cost efficient way for many of their clients.
In the meantime there will be swings in this stock and I just try to be swing value trader of such based on the perceived value case I observe. When they stop generating positive cash flow then I would be concerned and exit the game we play.
I presume you believe hat the company will sit idly aside and let what you predict occur??? They have $85 million in cash and the bulk of an already $20 million dollar share buyback still availble. They purchased some 12.5 million shares in the past year at much higher prices that $4.00