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Velti Halka Acık Limited Şirket Message Board

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  • browndiane87 browndiane87 May 23, 2012 12:56 AM Flag

    Recent pop and patent infringement overhang?

    I actually bought this stock at $17, rode it to $20,then down to $6 and sold at $12. Now I just trade it. I am heavily invested in Augme. Regarding their patent infringement suit, my understanding is that their patents are foundational, and nobody has been able to produce any prior art. Also, they are represented by Goodwin Procter, who competed against other firms to prosecute their IP. They have an outstanding reputation as one of the top IP litigation firms in the country. You can be sure that they thoroughly vetted the patents before signing on. Augme has a trial date with Yahoo in January - talk about David and Goliath. I do think it's risky to brush the matter off lightly. An injunction would be catastrophic for VELT.

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    • Thanks for the constructive feedback. Any comment, news, or company guidance on whether the overhang prior to litigation will impact new sales or existing US accounts? It is my understanding that in a patent infringement case, the customers can be held liable also, although I would question whether Augme would pursue this path if the eventually win their litigation.

      • 1 Reply to skirkel
      • The real issue with the patent infringement suit is that it's from their competitor. A competitor who is based in the US, who brands love with a 95% retention rate, whose gaining market share and who has seen numerous top people leave Velti to go work for them. They own the patents that Velti desperately needs and obviously infringes. Because the plantiff has a competitive business, they are able to possibly pursue a legal injunction which could literally shut down Velti's business in the states. I think smart money is already slowly starting to move money out of Velt and into shares of the other company as a better American pure play with much more credible and believable management. Plus the value of their competitor is cheaper and the leverage much better. Technical outages, losing big opportunites, employees leaving etc. Just doesn't make investors feel warm and fuzzy. Here's a recent comment from someone posted at Seeking Alpha:

        "I have followed this stock for two years and it is now back where it started. The problem is the incapability of the management to run a US listed public company properly in PR terms or any other. There have been a number of confidence crises, including some bad accounting around the time time of their IPO which needed correction. Their phone conferences are a disaster with their Greek CEO babbling away at breakneck speed in an unintelligible manner. In addition there has been talk in the trade about staff layoffs and unhappiness due to poor management, and not least Velti has 400 employees situated in Athens Greece which right now is a flashpoint of trouble. Many of the stock sales have come from employees who were given stock in the IPO.

        It is clear that the IPO money they got went to their heads and they have not stopped buying since. Why so if they have good internal growth? Any figures are dubious as with so many acquisitions it is near impossible to understand what the true direction is, and I would imagine that management are up to their necks in trying to co-ordinate their staff in their new acquisitions, rather than concentrate on their core business which it seems they can never make a profit on. They need new professional management to be appointed to their board of very high calibre to give some re-assurance that the management are in control.

        The current worry is that they will very soon run out of money, and a stock price that has shot up and down between $5-$20 often losing half its value in a week, as happened this last few days, is not conducive to anyone making a serious long term investment. This is for brave speculators only."

    • The patents (actually 1 "invention") are totally irrelevant to Velti and probably even irrelevant to Augme. If you study the patent in detail, from a technological perspective it soon becomes clear that its pretty much nonsense.

      Fortunately, its not possible to patent such abstract "methods and systems" in Europe, only in the US.