The fact is that we traded 30 million shares with last Q earnings announcement of the 100 million dollar writedown. If VELTI were truly bankrupt we would of traded twice that volume. As indicated they are filing bankruptcy for the US operations to get out of Mobclix and the losses associated with that business. They are also selling US assets to facilitate the bankruptcy filing and selling part of the business to blackstone to get more financing. As indicated this filing will not affect the other profitable parts of their business so well talk again after their earnings announcement next week. Either I'm out $7000 or up $50,000.
I think today is the worst for velti. They cleverly re-organized and minimized the debt. So this is a healthy company going forward. Looks like Ross completely blow this puppy up so they can re-energize. This is often a great sign for a company stock. If you can survive its cliff and hangon, you will be rewarded.