is to allow some of the business metrics to "sink in" and to be properly analyzed by investors, what some people fail to recognize is this is a very involved and complex business (SAAS and etc), it takes "time" to implement these rollouts and revs don't just magically appear before the tasks are completed. At current prices, this co. represents one the best values on the Street given what they "already" have on their plate, not to mention the market opps they have going forward. They are methodically going about the business of reaching that "inflexion" point that Blue, me and others are waiting for. My advice is to accumulate (especially on the pullbacks) and exercise patience, you won't regret it. Ok, that's my pep talk for the Holiday weekend folks, now go out and have a great Valentine's Day evening. Cheers.
Good points. My biggest concern with them is that their Current Assets are barely greater than Current Liabilities and the quality of the Current Assets is poor with very little Cash and most in Accounts Receivable. The numbers are slightly better than a year or two ago, but they are sure living on the edge.
First of all, we have to get past this whole "reporting on a Friday" thing. No offense, but I've never seen a group of people so nervous about a company holding their earnings call on a Friday and constantly trying to justify it. And then the chaos really hit when the stock price dipped over 11% prior to the call; like that's never happened before. I understand we have a lot of money invested in some of these securities, but if these kind of things are going to chew away at some of you, then this might not be the best investment opportunity for you. You're going to make yourself sick and likely pull out too early or too late in many stocks. So all I can say is leave the emotion at the door. Don't start panicking over Friday earnings and price fluctuations prior to a cc. I hope that sounds more encouraging than it does negative.
As for the current assets vs current liabilities, you're right, the current assets are only slightly above the current liabilities. But that is only one aspect of a big picture. If you look at their cash flow they will be just fine for now. They have a positive OCF and goof FCF. And quite frankly, that's all I need to have a good sleep at night. But follow the FCF - you'd be surprised how close you might actually be to dividend payouts. I can't give a projection as to when a company like this will be able to pay dividends, but my guess is that there is someone on the board who is going to be pushing for dividend payouts when the time is right. For now just follow the cash flow.
I actually give them good marks for managing their cash, I certainly prefer the current methods as opposed to massive dilution. Preserving shareholder value seems to be high on their priorities and that works for me, an overall 12% increase in gross margins vs. q1 2013 is impressive, they're gaining traction and that's coming across quite clear to me. GL.