I am just guessing here, Velti probably has a corporate structure then individual separate businesses under it.
They are doing Chapter 7 on Mobclix.
Chapter 11 on US\UK\India.
Keeping the rest under symbol velt.
Always my take has been they too much liabilities on the books about 200million, even though they had 300million in receivables(about 125million from business they are keeping Greece et al.).
So the question is will they discharge most of these liabilities in the chapter7\Chapter11?
They could be keeping 125millions in Receivables and very few liabilities.
So basically share price at 14 cents implies that (recoverable receivables - liabilities) are worth 10million.
Now I am guessing here so dont mortgage your house and buy another million shares.
Now the judge could put the parent company to BK and try to recover every penny which could make the current shares zero.
Anybody think am I on the right path.
So Edgar what do you think?
Best case is they issue warants and shares equal to 8% of newly issued shares AFTER shareholder wipeout. pretty much equal to the price youre looking at
Worst case is obvious complete wipeout. Ill go with the latter. They are too quiet over this mess, so the remaining entities will also file BK within next 6 months= short to death once GSO goes thru
Unless informed otherwise, BK, is off the table. At this point the speculation is what the PPS should be. The next couple of weeks certainly should be telling. IMHO, VELT remains well below price. Off to the Giants game. Go Giants!!!! GLTA
Sentiment: Strong Buy
you were never informed of the 110MM writedown , it just happened.
you were never informed of the BK filing, it also just happened.
total BK CAN happen, dont follow Beta and just believe Management words; think outside the box. you were a cop, so you should be good at this.
Enjoy the game, also have Giants to win this in my bracket