Velt cuts 200-250 (1/5) of its workforce ahead of earnings...
As reported in mobile marketer on May 9. Google it yourself...
So are we to assume the "street" will react positively to this? Or does Velti have another dog quarter coming Monday and is doing this as the most positive thing for the company to refer to? Just throwing this out there...
Nihd also cut 25% of its workforce AND got a new CEO but 95% of the time, the stock drops 6-15% and has been for 12 quarters. Are we to assume that there is good chance for a rebuy in the 1.60 range? My gut is saying take the chance....dump your shares today. get 13k profit. reload tuesday/wednesday as i see a 90% chance of a retest.
At any rate just thought id post this for all to digest...
Velti sheds 200 employees in hint of trouble ahead for mobile ad firms
By Mickey Alam Khan
What is it?
Velti, one of the leading mobile advertising and marketing technology firms worldwide, on April 30 cut an estimated 200 to 250 employees from its workforce a couple of weeks ahead of its first-quarter earnings call on May 13.
Ditto on the thanks. I sent the below regarding MIG to Velti:
Please address the status of the 5,670,311 ordinary shares issuable to the former shareholders of Mobile Interactive Group Limited (“MIG”) on the earnings call on Monday, e.g. is there a lockup period, associated price, associated price per share, etc.
Thanks for pointing this out! I had not seen it reported in regular news sources, nor does it come up in vanilla searches, AND it is supposed to have taken place (the Velti axe-meeting) on 4/30, with the ever-useless IR refusing to respond to requests for comment. Almost 1/5 of the global work-force. Was especially interested in the comment that they might even be getting out of the SF facility,
Of course, cutting the wage bill is a common corporate reaction to intense pressure on cash-flow and net income. Done BAC a world of good lately, and we'll have to see how it affects our heroes, in Q2 and on, since it would not have had any effect on Q1 (obviously). Severance packages often have a negative short-term effect.
Overall, I remain in shock as a Velti long (I only sold about 1/2 of position @2.40) , that THIS is the company that Moukass and Cheung sang and danced about all last year. Expensive way to learn a big investing lesson. But the investment is too messed up now, NOT to give Ross a chance to turn things around. I doubt if the Q1 call will cause a further fall - the investors on the F-3 list would have wanted to know about that, and would otherwise surely be taking their profits now, since there seems to have been no lock-up deal.