$300 mln/yr sales - Growing at 30 - 60%, PROFITABLE with 1400 corporate customers. 6 BILLION mobile devices and the market for mobile advertising to rise to $15 bln in 2015 and $25 bln in 2016 per research reports. Almost 19 mln shares short sold so covering could itself send this to teens or even higher.
Sentiment: Strong Buy
profitability just exists on paper currently - in fact the company as burned down a giant cash balance within a few quarters and is already on credit line life support. With a good chunk of the business now "sold" (again without getting paid in cash) even paper profitability will be down in 2013.
If they don't improve cash flow immediately they will be bankrupt at the end of the year at the latest.
hagen, you are fooling no one, as the most obvious short one can imagine. You made a big purchase earlier in the week AH and in the same week you do not even think the entity will make it though the year. Either way you must think you are addressing imbeciles.
EVERYONE NOTE THAT HAGEN IS SHORT AND NOT A PLAUSIBLE LIAR
Isn't that unbelievable.
I happen to know a LOT of analysts.
Depending on what guy you get, the number they apply to their discounted cash flow varies tremendously. You have to pick the guy that has a portfolio of stocks he covers that are actually doing well. If not - the analyst pulls in his reins so far that he takes all rrisk premium out of the valuation.
That is what you are getting from Wells Fargo. The numbers say buy - but he has too many fires going and so he does the cop out - pulls in his wings and IGNORES the numbers by applying some rouge discounted cash flow number to the valuation. And since Velti said their ebitda was coming down in the short term - he yanks the discount up to a point that is ridiculous.
Follow the Raymond James guy --- he is took on Velti recently and all is new and fresh - he has little baggage to deal with. He is at $8 and reaffirmed at 4:30pm the day of the media event.
1300+ global customers with 91% retention rate and 4000+ campaigns just in 2011
Customers to name a few - Ford, Subway, Verizon, Vodaphone, T-Mobile, Starbucks, Macys, Armani Exchange, IBM, Coca Cola, Sony, IBM, Shell, HP, Unilever, Microsoft, CBS, Reebok, Johnson & Johnson, Mastercard, Clinique, Nestle, Proctor & Gamble, Dell, Intel, Levis, Nokia, MTV, Honda, Citibank, McDonalds, Airtel, Google, Time, CNN, Crocs, Dominos Pizza, Lenovo, JC Penney, Hyndai, Toyota, Bayer, Kellogs, BBC, Skype, Colgate, AT&T, Oracle, GM, Adidas, Canon, Chevrolet, Alibaba and hundreds of more. (Source Velti presentation)
$14.5 billion mobile marketing and advertising spending by 2014 with 6+ billion just mobile phone now worldwide with other handheld devices like Tablets, iPads add to this huge opportunity. More smart phone users daily exploding the opportunity for Velti.
Sentiment: Strong Buy